It’s one of the most common questions we get from our readers: “Can I qualify for an FHA loan with a credit score of 580, 600, 650, 680 or … [fill in the blank]?” Unfortunately, this is not a yes-or-no question. The Department of Housing and Urban Development (HUD) has some specific guidelines for borrower […]
FHA Appraisal Was Below Purchase Price: What Should I Do?
Question: “We made an offer to buy a house with an FHA loan. A few days later, our mortgage lender sent an appraiser to figure out how much the home is worth. The FHA appraisal was below the purchase price amount we have agreed to pay. About 20K below, actually. Now our lender says they […]
How an FHA Adjustable-Rate Mortgage (ARM) Works, and When to Use It
FHA-insured home loans are available with both fixed and adjustable interest rates. There are certain pros and cons associated with each type. The article explains how an FHA adjustable-rate mortgage (ARM) loan works, and when it might make sense to use one. Most home buyers who use ARM loans do it to save money during […]
3 Common FHA Loan Problems, and How You Can Avoid Them
Some FHA borrowers sail through the mortgage lending process with no issues whatsoever. If you’re lucky, you’ll be one of them. Other borrowers encounter FHA loan problems that can delay the closing process or, at worst, derail it entirely. Awareness is the first step to avoiding such problems. By understanding what can go wrong during […]
How to Make an FHA Offer to Purchase a Home
Reader question: “We are using an FHA loan to buy a house, and I have some questions about the offer process. Is it any different when using this type of mortgage program? How do we make an FHA offer to purchase a home? Lastly, how do we decide a fair amount? Do we just take […]
The FHA Loan Pre-Approval Process Explained
Are you planning to use an FHA loan to buy a house? If so, it’s probably a good idea to get pre-approved by a lender before you start house hunting. It will help you identify your price range, and will make sellers more inclined to accept your offer. This article explains how the FHA loan […]
2015 FHA Mortgage Rate Forecast and Predictions
With October only days away, and the end of the year in sight, we thought it was time to offer an FHA mortgage rate prediction and forecast for 2015. The following projection is based on insight provided by various economists and analysts, who have been cited accordingly. So without further ado, here is your 2015 […]
How and Where to Get an FHA Loan: A Guide for Borrowers
Reader question: “I’ve heard that FHA home loans are good for first-time buyers like myself, because they’re easier to get and you don’t have to put as much money down. Is this true? And if so, how do I get an FHA loan when buying my first house? Any advice would be much appreciated?” FHA […]
Are FHA Loans Easy or Hard to Qualify for?
Reader question: “I have heard that FHA home loans are fairly easy to qualify for. Or at least that they are easier than regular mortgages. Is this still true? I’m wondering if it applies anymore, because I’ve read a lot about FHA rule changes and stiffer requirements. Does that mean they are hard to get […]
What Does an FHA Underwriter Look for During His Review?
Mortgage underwriting can be one of the more obscure parts of the lending process. Borrowers know a lot about the application stage because they are actively involved in it. Likewise, they are generally aware of what takes place at closing because they are present for the process. But it is this middle stage, known as […]