The Federal Housing Administration has specific requirements for termite inspections when an FHA loan is being used to buy a home. These requirements are outlined in HUD Handbook 4000.1, also known as the Single Family Housing Policy Handbook. Below you’ll find a basic overview of FHA inspection requirements for termites and other wood-destroying insects, including […]
Category: FHA Loans
Can I Sell My Home if I Have an FHA Loan on it?
Reader question: “We purchased a home a while back with an FHA mortgage loan. Now we would like to sell the home in order to relocate for work. Can I sell my house if I still have an FHA loan on it?” The short answer is yes, in most cases it’s entirely possible to sell […]
How Long Is an FHA Appraisal Good for / Valid?
All homes purchased with an FHA-insured mortgage loan have to be appraised prior to closing. The purpose of the appraisal is to (A) determine the market value of the home and (B) ensure that it meets HUD’s minimum property requirements. Today, we’ll address a common question on this subject. How long is an FHA appraisal […]
FHA vs. Conventional Down Payments: It’s a Tighter ‘Race’ These Days
The FHA vs. conventional down payment comparison has become tighter over the last couple of years, due to policy changes made by Fannie Mae and Freddie Mac. These days, eligible borrowers can get a conventional loan with a down payment as low as 3%, compared to the minimum 3.5% that’s required for FHA-insured mortgage loans. […]
Maximum Loan-to-Value (LTV) Ratio for the FHA Mortgage Program
If you plan to use an FHA loan to buy a house, you’ll be limited to a certain loan-to-value ratio, or LTV. The maximum loan-to-value ratio for the FHA mortgage insurance program is 96.5%, according to official HUD guidelines. This means that eligible borrowers can make a down payment as low as 3.5% of the […]
7 Things to Know About FHA Loans When Selling Your Home
Occasionally we receive questions from sellers regarding FHA loans. These folks usually want to know how they might be affected by working with a home buyer who is using an FHA loan. So we’ve compiled some of the most frequently asked questions to create a seller’s guide to FHA-insured mortgage loans. Table of contents: 7 […]
How to Qualify for an FHA Loan After Bankruptcy (Chapter 7 or Chapter 13)
It’s possible to qualify for an FHA loan after a bankruptcy filing. Depending on the circumstances, there might be a waiting period of 12 months to two years from the discharge date. Here’s a summary of the rules and guidelines that are explained in detail below: Getting an FHA Loan After Bankruptcy The FHA loan […]
FHA Requirements for Appliances (Refrigerator, Dishwasher, Dryer, Etc.)
If you’re buying a home with an FHA loan, you should know that the Federal Housing Administration has some specific requirements for major appliances. In this context, we’re talking about home appliances such as dishwashers, refrigerators, and washing machines. The good news is that the FHA requirements for home appliances are pretty straightforward. Basically, they […]
Paying Discount Points for a Lower Rate on an FHA Loan
Want a lower interest rate on your FHA-insured mortgage loan? Consider paying points at closing. This one-time, upfront closing cost could give you access to a “discounted” rate, thereby saving you money over the long term. But “long term” is the key phrase in that last sentence. Paying discount points on an FHA loan is something […]
Can the Seller Pay the Buyer’s Down Payment With FHA Loans
“Can the seller pay for the buyer’s down payment when an FHA loan is being used?” This is a common question among buyers and seller who are involved with an FHA-financed real estate transaction. And there’s a fairly straightforward answer — no. Here’s what you need to know. The short answer: Home buyers who use […]