Much has been written about the potential benefits of using an FHA loan to buy a house. (Google it, and you’ll see what I mean.) But less has been written about the potential downside of using this program. In truth, there are some real disadvantages of FHA loans. Mortgage insurance is chief among them. If […]
What Is an FHA Loan and How Does It Work?
What is an FHA home loan? How do these loans work? What makes them different from “regular” mortgage products. These are three of the most common questions home buyers and mortgage shoppers have about the FHA loan program. This article will answer all three of these questions, in order to eliminate confusion. Let’s start with […]
Do FHA Lenders Check My Credit Score Again Before Closing?
Reader question: “At what point during the home-buying process do FHA mortgage lenders check my credit score? I’m guessing they do it at the start of the process, when I first apply for a loan. But do they run a second credit check before closing?” Here’s the short answer: Most lenders who offer FHA loans […]
How to Start the FHA Loan Process: Putting First Things First
The FHA mortgage process can be both intimidating and confusing to a first-time borrower. With so many steps in the process, where do you even begin? This article is a road map to get you pointed in the right direction. It explains how to start the FHA loan process the right way. Start the FHA […]
Difference Between FHA and Conventional Loans
The main difference between FHA and conventional loans is the government insurance backing. Federal Housing Administration (FHA) home loans are insured by the government, while conventional mortgages are not. Additionally, borrowers tend to have an easier time qualifying for FHA-insured mortgage loans, compared to conventional. The closing process can take a bit longer as well, […]
Is My Credit Score Too Low for an FHA Mortgage Loan?
Reader question: “I was recently turned down for a mortgage. I was told the reason was that my credit score was too low for the FHA loan program, which is what I was applying for. How high does a score have to be for this kind of loan, and what can I do to improve […]
Why First-Time Home Buyers Use the FHA Loan Program
It’s a common misconception that FHA loans are only for first-time home buyers. But this is not true. In fact, anyone who meets the minimum guidelines set forth by HUD could qualify for the program. This applies to former homeowners as well as first-time buyers. While the FHA loans are not limited to first-time buyers, […]
Chicago, Illinois FHA Mortgage Rates in 2015
FHA mortgage rates in Chicago, Illinois and other major metro areas dropped again last week, much to the surprise of housing analysts. The Federal Reserve also announced they would hold the federal funds rate (that is used for inter-bank borrowing) near zero percent for the foreseeable future. The table above shows Chicago FHA rate averages […]
How Do I Get the Lowest Rate on an FHA Loan?
Reader question: “I’ve read that FHA mortgage rates are in the 4% range right now. But one of my relatives had to pay around 4.5% on a 30-year home loan, just last week. So I have two questions. How are mortgage rates determined by lenders, and what can I do to get a good rate […]
I’m Pre-Qualified by an FHA Lender. Does That Mean I’ll Be Approved?
Question: “I went onto a mortgage lender’s website and got pre-qualified for an FHA home loan. They gave me an estimated amount I might qualify for, and then I got an email from a guy asking for various documents. I haven’t gotten back to him yet. What does pre-qualifying mean, exactly? If I am pre-qualified […]