If you are looking for some financing, you can look at your home’s equity as a source. When you refinance your existing mortgage for a new one, you can choose to do a cash-out refinance. A cash-out refinance works by pulling money from your home equity. Ideally, you need at least 20 percent home … [Read more...]
Why do Some Sellers Refuse Buyers Using FHA Financing?
Sellers have the option to accept or deny bids on their home for sale. Does it make sense to deny someone that wants to buy your home, though? It could. Even if the bid is high enough, it could make sense. Some people selling their home just aren’t comfortable with FHA financing. Generally, the … [Read more...]
What are the FHA Non-Allowable Closing Costs?
The Department of Housing and Urban Development handles FHA loans. They set the guidelines regarding underwriting. They also decide which costs are allowed and not allowed. The FHA loan is known for its low down payment needs as well as affordable closing costs. Before you take out an FHA loan, you … [Read more...]
Securing a FHA Mortgage After Bankruptcy
You filed for bankruptcy and assume your chances of securing a mortgage are lost. It used to be that you had to wait 7 years to start again. Luckily, this is not the case today. With an FHA mortgage, you only have to wait 2 years, sometimes less. It depends on the type of bankruptcy you chose. We … [Read more...]
Applying Again After an FHA Loan Denial
Receiving an FHA loan denial is like a kick in the stomach. Now what? You know it’s one of the more lenient programs. What’s left for you? The good news is you have other options, including applying for an FHA loan again. The bad news, you must figure out why you got denied. Your loan officer … [Read more...]
DTI (Debt-to-Income) Ratio Requirements for FHA Loans
Every loan program has specific DTI requirements. Your debt-to-income ratio shows lenders if you can afford the mortgage or not. Every program has different thresholds. For instance, conventional loans have much stricter debt ratio requirements than FHA loans have. Regardless of the strictness of … [Read more...]
Do you Need to Work With a Specific Realtor with FHA Loans?
This is a common question when borrowers look to FHA financing. Because FHA loans have so many restrictions, they assume they must use a specific realtor for the program. The long and short answer is “no you don’t.” The FHA does not regulate who represents you in your home purchase. However, the … [Read more...]
When is it not Advantageous to Use an FHA Loan?
You probably hear that FHA loans are the perfect first-time homebuyer loans or for those starting again in life. This is true. However, before you jump into the mortgage program headfirst, you should know both sides of the equation. Every loan program has downsides. Understanding the downsides of … [Read more...]
Applying for an FHA Loan: What You Should Know
Applying for an FHA loan works much the same way as any other loan application. You fill out the standard 1003 and submit it to one or more lenders. You then wait for a response and go from there. However, you should know the process before you apply. Smart planning helps increase your chances of … [Read more...]
Is it Time for the FHA to Ease Credit?
Although the FHA offer less stringent qualification requirements for borrowers who may have a problem with their credit score, it does not mean that those within this less-than-stellar FICO range can actually qualify for the loan. Why is this so? According to the Urban Institute, around 1.1 … [Read more...]
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