Key highlights from this article: A conventional mortgage loan is one that is not insured or guaranteed by the government. The requirements for conventional loans can vary from one lender to the next. Common requirements include a credit score of 600 or higher, a down payment of 3% or more, and a debt-to-income ratio no […]
Acceptable Down Payment Sources for FHA Loans
Key highlights from this article: HUD Handbook 4000.1 outlines the acceptable down payment sources for FHA loans. Borrowers who use this program to buy a house can only use funds from an approved source. Down payment funds may come from savings, cash saved at home, investments, and more. Keep reading below for a closer look […]
FHA Insurance Requirements: What Borrowers Need to Know
The Federal Housing Administration (FHA) loan program has specific insurance requirements for borrowers and lenders alike. In fact, the entire program is built around insurance — and it comes in different forms. So we’ve created a handy, all-in-one guide to FHA insurance requirements and policies. FHA Insurance Protects Mortgage Lenders The FHA does not lend […]
Cancellation of 10-Year Warranty Requirement on FHA Loans
In March 2019, officials from the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) announced some changes to the home warranty requirements on FHA loans. At a glance: This change, announced in Mortgagee Letter 2019-05, eliminates the 10-year protection plan requirements on some FHA loans. It cancels the requirement that […]
Termite Inspection Requirements for FHA Loans
The Federal Housing Administration has specific requirements for termite inspections when an FHA loan is being used. 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. Please refer to official guidelines […]
FHA Loan Third-Party Verification of Employment and Income (New Guidance)
On February 15, 2019, the Federal Housing Administration issued some new guidelines for third-party verification of borrower income, employment and assets (for FHA loans). They also issued a new Mortgagee Letter to go along with it, which is summarized below. Third-Party Verification of Income, Assets & Employment On February 15, FHA officials issued “Mortgagee Letter […]
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 […]
Florida FHA Loan Limits in 2019: Another Year, Another Increase
Update: Here are the revised limits for 2020 Another year, another increase in FHA loan limits for Florida. In 2019, FHA loan limits were increased for nearly all Florida counties, with the exception of Collier and Monroe. In those two counties, the 2018 caps were simply carried over to 2019. But in all of the […]
California FHA Loan Limits 2019: They’ve Gone Up Again
Another year, another increase in California FHA loan limits. In response to rising home prices nationwide, the Department of Housing and Urban Development (HUD) announced that it was increasing FHA loan limits for 2019. HUD is the department that oversees the Federal Housing Administration’s mortgage insurance program. As a result of this change, most counties […]
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 […]