Reader question: “We are planning to buy a home later this year and plan to use an FHA loan. We currently have quite a bit of credit card debt. Is it possible to qualify for an FHA loan with credit card debt? Are there any rules or requirements we should know about?” You are not […]
Acceptable Down Payment Sources for FHA Loans and Requirements for Using Them
The Federal Housing Administration loan program is popular among home buyers who don’t have a lot of money saved for a down payment. These government-backed mortgages allow borrowers to make a minimum upfront investment as low as 3.5% of the purchase price. The Department of Housing and Urban Development (HUD), which manages the program, allows […]
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 […]
FHA Termite Inspection Requirements
The Federal Housing Administration has specific requirements for termite inspections when an FHA loan is being used to buy a home. 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, including […]
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 […]
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 […]
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 ratio for the FHA mortgage insurance program is 96.5%, according to official HUD guidelines. This means that eligible borrowers can make a down payment as low as 3.5% of the […]
How Do FHA Loans Affect the Seller, and Other Frequently Asked Questions
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 […]
How to Qualify for an FHA Loan After Bankruptcy (Chapter 7 or Chapter 13)
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. Here’s a summary of the rules and guidelines that are explained in detail below: Getting an FHA Loan After Bankruptcy The FHA loan […]