Home prices have risen steadily over the last year or so, in most U.S. cities. In some counties, the current median home value is significantly higher than FHA loan limits within the same county. This makes it harder for home buyers to find a suitable property that falls within the maximum size limits. And it […]
Average FHA Closing Costs for Borrowers: 2016 Update
When you use an FHA loan to buy a home, you’ll accumulate certain fees and charges along the way. Collectively, these are known as your FHA closing costs. Some of the fees come from the mortgage lenders. Others come from third parties such as home appraisers, title companies, and credit-reporting agencies. FHA closing costs average […]
Chart: FHA Annual Mortgage Insurance Premiums (MIP) for 2016
At a glance: Most FHA borrowers pay an annual MIP of 0.85% for the full term of the loan, or up to 30 years. FHA mortgage insurance premiums (MIPs) can be somewhat confusing to home buyers. There are several reasons for this. First of all, there are two different kinds of premiums, and they are […]
Overview of the FHA Closing Process for Home Buyers
Closing is the final step in the FHA home buying process. This is when the buyers sign all remaining paperwork, pay their closing costs and fees, and get the keys to their new house. Hooray! But what actually happens during the FHA closing? What should a home buyer know about this process, in order to […]
FHA Loan Application Process: Not Much Different from Conventional
Our readers frequently have questions about the FHA loan application process. Apparently it’s a popular subject. First-time home buyers, in particular, seem to think that the FHA application process is vastly different from conventional. In reality, the steps you would to through when applying for a Federal Housing Administration-insured home loan are very similar to […]
FHA Adjustable Rate Mortgage (ARM) Guidelines from New Handbook
Editor’s note: This article outlines the basic requirements for FHA adjustable-rate mortgages. It is intended for lenders and borrowers alike. We also have a consumer-friendly overview that explains how ARM loans work, their pros and cons, etc. If you’re not familiar with these products, you might want to start with the overview. The Federal Housing […]
Update on FHA Effective Income Requirements for 2016
Are you thinking about using an FHA loan to buy a house? If so, there’s an important phrase you should know about. It’s called the “Effective Income.” Mortgage lenders will calculate this number when considering you for a loan. Here are the latest income requirements for FHA borrowers. Related article: FHA debt-to-income ratios FHA Income […]
MIP Cancellation: How to Remove FHA Mortgage Insurance in 2016
Since 2016 began, we have received a lot of questions about canceling mortgage insurance on FHA loans. People want to know: How do I cancel the annual MIP attached to my FHA loan? How long before I can remove this extra insurance premium? Is it even possible? Here’s what you should know. Current policy for […]
Q&A: Why Would the FHA Not Approve a Home for Purchase?
Reader question: “My husband and I are thinking about using an FHA loan to buy a home in our area. But a lot of the homes around here are fixer-uppers, older properties, etc. I’ve been told we might have trouble getting a HUD loan for this reason. Why would FHA not approve a home? Are […]
Is an FHA Loan Worth It, from a Home Buyer’s Perspective?
Reader question: “I am considering using an FHA mortgage to buy a house in summer 2016. I’ve read about the extra insurance I will have to pay for when using this type of loan, and I’m wondering if that negates some of the benefits they offer. Is an FHA loan worth it these days, from […]