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 […]
FHA vs. Conventional Down Payments: It’s a Tighter ‘Race’ These Days
The FHA vs. conventional down payment comparison has become tighter over the last couple of years, due to policy changes made by Fannie Mae and Freddie Mac. These days, eligible borrowers can get a conventional loan with a down payment as low as 3%, compared to the minimum 3.5% that’s required for FHA-insured mortgage loans. […]
Maximum Loan-to-Value (LTV) Ratio for the FHA Mortgage Program
If you plan to use an FHA loan to buy a house, you’ll be limited to a certain loan-to-value ratio, or LTV. The maximum loan-to-value for the FHA mortgage insurance program is 96.5%, according to official HUD guidelines. This means eligible borrowers can make a down payment as low as 3.5% of the home’s value […]
FHA Seller Guide: 7 Things You Should Know When Selling
Occasionally we receive questions from sellers regarding FHA loans. These folks usually want to know how they might be affected by working with a home buyer who is using an FHA loan. So we’ve compiled some of the most frequently asked questions to create a seller’s guide to FHA-insured mortgage loans. Table of contents: 7 […]
FHA Loan After Bankruptcy: Waiting Period, Requirements, and More
It’s possible to qualify for an FHA loan after a bankruptcy filing. Depending on the circumstances, there might be a waiting period of 12 months to two years from the discharge date. After that period of time, an eligible borrower could get an FHA-insured mortgage loan to buy a house. There are different requirements for […]
FHA Requirements for Appliances (Refrigerator, Dishwasher, Dryer, Etc.)
If you’re buying a home with an FHA loan, you should know that the Federal Housing Administration has some specific requirements for major appliances. In this context, we’re talking about home appliances such as dishwashers, refrigerators, and washing machines. The good news is that the FHA requirements for home appliances are pretty straightforward. Basically, they […]
Paying Discount Points for a Lower Rate on an FHA Loan
Want a lower interest rate on your FHA-insured mortgage loan? Consider paying points at closing. This one-time, upfront closing cost could give you access to a “discounted” rate, thereby saving you money over the long term. But “long term” is the key phrase in that last sentence. Paying discount points on an FHA loan is something […]
Maximum Term Length for an FHA Loan Is 30 Years, Handbook Says
According to current guidelines established by the Department of Housing and Urban Development, the maximum repayment term for an FHA-insured mortgage loan is 30 years. But what does that mean exactly? Here’s an explanation of the mortgage repayment term length for FHA loans, as it applies to you as a borrower. Maximum Repayment Term (Length) for […]
Can the Seller Pay the Buyer’s Down Payment With FHA Loans
“Can the seller pay for the buyer’s down payment when an FHA loan is being used?” This is a common question among buyers and seller who are involved with an FHA-financed real estate transaction. And there’s a fairly straightforward answer — no. Here’s what you need to know. The short answer: Home buyers who use […]
Appraisal Problems: Reasons Why FHA Loans Fall Through Before Closing
This is the first in a series of articles that will cover some of the most common reasons why FHA loans fall through prior to closing. Many borrowers sail through the FHA review process with no issues whatsoever, while others encounter roadblocks along the way. So it’s important to know what those obstacles are, and […]