We recently reviewed the latest version of HUD Handbook 4000.1, to see if there have been any important changes that will affect borrowers in 2022. As it turns out, FHA credit score requirements in 2022 will likely remain the same as they’ve been for the past few years. Here is a quick overview of those […]
How an FHA 5-Year (5/1) ARM Loan Works
What is an FHA 5-year ARM loan and how does it work? What are the advantages or benefits of using an FHA 5/1 ARM loan, versus the more common 30-year fixed? Is an adjustable-rate mortgage the right choice for me? These are some of the most common questions home buyers and mortgage shoppers have about […]
FHA Loan Requirements for 2023: Updated Information for Borrowers
On October 26, the Federal Housing Administration sent out an email to announce some updates to the Single Family Housing Policy Handbook. Also known as “HUD Handbook 4000.1,” this is the official set of guidelines and requirements for FHA-insured home loans. According to their announcement: “The updates include enhancements and revisions to existing guidance as […]
Can a Seller Refuse an FHA Loan Offer from a Buyer?
Highlights from this article: Yes, a seller can refuse an FHA loan offer from a home buyer. You can refuse any offer that doesn’t meet your needs or expectations. Housing discrimination, on the other hand, is prohibited by law. FHA loans have a closing success rate similar to conventional mortgages. The best strategy is to […]
Will It Be Easier to Buy a Home With an FHA Loan in 2022?
Home buyers using FHA loans have had a hard time in 2021. The real estate market has been tilted in favor of sellers, due to low inventory and high demand. These seller’s market conditions allow homeowners to pick and choose what they feel is the best offer. In many cases, home buyers using FHA loans […]
How Often Do FHA Loans Get Rejected in the Underwriting Stage?
Reader question: “I was planning to use an FHA loan to buy a house later this year, but I’ve heard they get denied in underwriting a lot. Are there any statistics that show exactly how often FHA loans get rejected during the underwriting process?” Due to consumer privacy laws, there aren’t any specific numbers that […]
Can I Get an FHA Loan Without an Appraisal?
“Is it possible to get an FHA loan without a home appraisal?” This question was sent in by one of our readers. If you’re buying a home using an FHA loan, the property will have to be appraised. You cannot buy a home with an FHA loan without an appraisal. The appraiser must review the […]
FHA Loans Take Longer to Close Than Conventional, on Average
A lot of home buyers who are considering the FHA loan program have questions regarding the timeline. One of the most common questions is: Do FHA loans take longer to close, when compared to regular or conventional mortgage loans? The short answer is yes. Industry data show that FHA loans do take longer to close […]
Using an FHA Loan in a Hot Seller’s Market
It’s still a sellers real estate market in 2021, and some home buyers with FHA loans are having a hard time competing. But why? In this article, we will explore the potential downsides and disadvantages of using an FHA loan in a highly competitive seller’s market. We won’t sugarcoat it. Using a government-backed mortgage loan […]
Requirements: Monthly Income Needed for an FHA Loan
Elsewhere on this website, we have covered some of the minimum requirements for an FHA loan. Today, we will zero in on the amount of income that’s needed to qualify for an FHA loan. While the Federal Housing Administration does not have any specific income requirements for FHA loans, they do have some established guidelines […]