Something that many borrowers get confused about is how the lender comes up with their FHA payment and/or debt ratio. Even if you think you have everything all figured out, chances are the lender is going to come up with different numbers. This could be for a number of reasons that include: How you receive your income (full-time, part-time, seasonal, commission, salary, etc.) How your … [Read more...]
VA and FHA Home Buying Tips
VA and FHA Home Buying Tips There has been a recent downturn in the real estate housing market but that can mean great deals for buyers. More houses on the market with less buyers means that the buyers have the advantage. This article can help you find the advantages of home buying and help you to be able to find the house you have always wanted, at a price you can afford. Click Here to Get a … [Read more...]
Acceptable Sources of Funds For Closing Costs / Down Payment
Every now and then, someone will ask me "is it okay if I ______________ to pay for my closing costs?" So I thought I would outline what most lenders will accept as an acceptable source of funds for closing costs and/or down payment when getting an FHA loan. Remember: no matter what funds you plan on using, they are going to have to be documented as to the source of the funds. Acceptable Sources … [Read more...]
FHA Minimum Credit Score Now 620
Another week, another change in underwriting guidelines - but this time it just got easier to get a mortgage if your credit score is 630. Effective immediately, the minimum credit score for an FHA purchase mortgage is now 620. A few conditions that must be present for these loans include: Maximum PITIA may not exceed 33% of total qualifying income Maximum total monthly obligations … [Read more...]
FHA Downpayment, FHA Insurance Costs To Rise?
Is it about to get tougher to get an FHA loan? It is according to the Chicago Tribune. According to a story that ran today, look for FHA insurance (UFMIP and/or Monthly MI) and down payment requirements to rise for FHA loans soon. Among the steps scheduled to be outlined today are greater down payment requirements and higher credit scores for consumers who seek FHA-backed mortgages. Few … [Read more...]
640 Is The New 580
For many years, if you wanted to get an FHA loan, you didn't actually have to have a "minimum" credit score - but about 2 years ago, that changed when lenders started requiring a minimum credit score. When lenders first started requiring minimum credit scores, the first minimum credit score they used (or most of them used anyway) was 580. Then over time it moved to 620. And now I am seeing … [Read more...]
FHA Mortgages: Changes Coming?
We are in uncharted waters when it comes to FHA financing - and in my experience, uncharted waters means anything can happen. But you may have heard that recently the FHA insurance fund has dropped below the Congressionally mandated 2% and there is a lot of discussion about whether or not FHA is going to need a bailout. Will FHA need a bailout? I don't have enough information to know for … [Read more...]
FHA Mortgage Facts From FHA Outlook
From time to time, I am asked questions about the FHA program or FHA loans by various people such as: "How long does it take to fund an FHA loan?' "What is an average FICO score for someone who gets an FHA loan?" "Is the Hope for Homeowners program real?" "How come I have never heard of the 203k streamline program?" I am sure there are many places to get the answers to the above … [Read more...]
Arizona FHA Loans – As Popular As Ever
Recently, we were speaking with a group of sales professionals who work for a local roofing company about the benefits of the FHA 203k loan program and how it can potentially help their clients. After introductions, we started speaking about the FHA loan programs and which ones would be right for what types of situations and the sales manager interrupted us and said: "Hey, guys -- pay … [Read more...]