An FHA loan is a commonly-sought mortgage program by potential borrowers who would like to get a home loan but have problems either with their credit score or getting enough money to pay the conventional down payment requirement. An FHA loan is one of the housing programs established by the government to aid a significant chunk of the borrower market who cannot get a conventional mortgage. Because many lenders shy away from the risk of these types of borrowers, the FHA stepped in to cover for … [Read more...]
An FHA Mortgage in a Market of Rising Rates
There’s no doubt. Mortgage rates are going to continue its march forward and there’s little to no evidence of it going down. As housing inventory continue to stay in the low, creating an equivalent push of home prices up, it’s becoming harder and harder to find a home, and the mortgage for the needed financing. The question then hangs: what are the best mortgage options available in this climate of rising rates? We say you take a look at FHA loans. If you are a first time home buyer, … [Read more...]
3 Reasons to Use the FHA Streamline Refinance Program
You decided it is time to refinance because you know that rates are lower and who wouldn’t love a lower payment, right? But how do you know which program to refinance with when you have an FHA loan? You are not restricted to using only the FHA program when you refinance, unless of course, you do not qualify for a conventional loan. But assuming that you qualify for both programs, which one offers the best deal? Generally, the FHA Streamline Refinance Program offers you a large variety of … [Read more...]
The Minimum Property Standards for an FHA Loan
Qualifying for an FHA loan is often easier than qualifying for any other type of loan. However, you should know that there are particular requirements when it comes to the appraisal. The FHA wants to make sure that the home you are about to purchase is safe and sound as it is the collateral that you put up in order to take out such a large loan. If a home does not meet FHA requirements, you will not be eligible for FHA financing unless the issues are fixed and approved by the appraiser and/or … [Read more...]
Looking To Buy A New Home
A simple story from an FHA borrower: My family and I were wanting to buy a new house. We had been saving for a few years and had been living below our means just so we would be able to purchase a house that we all loved. We really wanted to get an FHA loan since they were so popular with first time home buyers like us. That type of loan was insured by FHA, the Federal Housing Administration. That meant that the bank took less of a risk loaning to us in case we defaulted on the loan. Not … [Read more...]
Does FHA Require A Minimum Credit Score?
One of the most popular questions many loan officers are asked in today's market is: "Does FHA require a minimum credit score?" And the official answer to that questions is: No, FHA doesn't require a minimum credit score - but many lenders do. Which means you must meet the lender's minimum credit score requirement if you are going to get them to loan you money even if it is insured by FHA against loss. About 2 years ago, many lenders started moving toward requiring a minimum mid … [Read more...]
FHA Streamline: What Is The Deal With A Minimum Credit Score?
No doubt, if you are wondering if the FHA streamline program has a minimum credit score, you are probably confused. There is mis-information everywhere - or maybe the information that you see was correct at one time, but is no longer true. FHA Streamline Rules For Minimum Credit Scores Officially, FHA does not have a minimum credit score requirement for the FHA streamline program. BUT -- lenders have started requiring minimum credit scores, and every lender seems to have their own set of … [Read more...]
FHA Streamline Mortgage: Check Rates Often
Because the FHA streamline mortgage program is so easy to do, many times it may make sense to participate in the FHA streamline mortgage program more than once in a relatively short period of time. There are no time restrictions on how many times you can do an FHA streamline mortgage - only that it makes financial sense each time you do it. No matter where you live, you can check out interest rates on a daily basis. Sometimes Arizona mortgage rates will be different than California mortgage … [Read more...]
FHA Streamline Refinance: No Income Verification With The FHA Streamline Program
With the FHA streamline refinance, there is no income verification. You are able to participate in the FHA streamline refinance program as long as you meet 3 criteria. First, you must live in the property - the FHA streamline refinance program doesn't allow investment properties or second homes. Second, you can't have more than 2 thirty day late payments on your mortgage in the last 12 months. FHA wants to make sure that you have a good payment history. Third, FHA won't let you participate in … [Read more...]
FHA Streamline Refinance: How Long Does An FHA Streamline Refinance Take?
Many people who are interested in an FHA streamline refinance wonder what is involved and how long it takes to complete the refinance and get a new FHA loan. Depending on which lender you choose, times may vary - from anywhere between 2 and 6 weeks. The process of the FHA streamline refinance is relatively simple. First, in order to qualify for an FHA streamline refinance, you need to have been on time with your mortgage payment for the last 12 months and live in your home. Once you qualify … [Read more...]