Reader question: “When does the FHA inspection process takes place? Does it happen right after we make an offer on a house?” This is a common question among borrowers who are considering the FHA mortgage insurance program. Here are three things you should know right off the bat: FHA does not require a full home […]
Can I Borrow My FHA Down Payment from Someone Else?
Earlier this year, we published a guide to FHA loan down payments. Since then, we’ve received quite a few questions from borrowers on that subject. A common question among home buyers who are considering this program is: Can I borrow my FHA down payment from someone else? The short answer is no. The funds used […]
Can I Get an FHA Loan With a Lot of Credit Card Debt?
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 […]
Overview of Conventional Loan Requirements in 2019
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 […]