The main difference between FHA and conventional loans is the government insurance backing. Federal Housing Administration (FHA) home loans are insured by the government, while conventional mortgages are not. Additionally, borrowers tend to have an easier time qualifying for FHA-insured mortgage loans, compared to conventional. The closing process can take a bit longer as well. […]
Why First-Time Home Buyers Use the FHA Loan Program
It’s a common misconception that FHA loans are only for first-time home buyers. But this is not true. In fact, anyone who meets the minimum guidelines set forth by HUD could qualify for the program. This applies to former homeowners as well as first-time buyers. While the FHA loans are not limited to first-time buyers, […]
FHA Loan Document Requirements for 2025
Do you plan to use an FHA loan to buy a house? If so, you should be prepared to provide, review, and sign a wide variety of documents. These documents are needed to complete the FHA loan application, underwriting and closing process — and they’re all important. In this guide, we’ll review some of the […]
How Much of an FHA Loan Can I Qualify for and Afford?
We receive a lot of questions from readers that fall into the “how much” category. Some of the most frequently asked questions in this area include: All of these questions are addressed below. We’ll start by looking at the official guidelines issued by HUD. Then we’ll look at how mortgage lenders use those guidelines (among […]
The FHA Approval Process: 5 Steps to Getting Your Loan Approved
Are you planning to use an FHA-insured home loan to buy a house? If so, you probably have questions about the FHA approval process, and what it takes to get approved these days. This tutorial breaks the entire process down into five key stages. While the individual steps can (and usually do) vary from one […]
FHA Appraisal Was Below Purchase Price: What Should I Do?
Question: “We made an offer to buy a house with an FHA loan. A few days later, our mortgage lender sent an appraiser to figure out how much the home is worth. The FHA appraisal was below the purchase price amount we have agreed to pay. About 20K below, actually. Now our lender says they […]
The FHA Loan Pre-Approval Process Explained
Are you planning to use an FHA loan to buy a house? If so, it’s probably a good idea to get pre-approved by a lender before you start house hunting. It will help you identify your price range, and will make sellers more inclined to accept your offer. This article explains how the FHA loan […]
The FHA Mortgage Underwriting Process: A Borrower’s Guide
From a borrower’s perspective, underwriting is one of the most important steps in the FHA loan process. It can determine whether or not the loan will be approved and funded. It’s also one of the most “mysterious” steps in the process, especially for first-time home buyers. That’s because buyers usually don’t interact with the underwriter […]
5 Common Reasons for FHA Loan Rejection, and How to Avoid Them
FHA loans tend to have more flexible and “forgiving” qualification criteria, when compared to conventional mortgage financing. But that doesn’t mean everyone can qualify for this program. In fact, thousands of would-be home buyers get turned down for FHA loans every year, and for a wide variety of reasons. In this guide, we will explore […]
How Long Does it Take an FHA Loan to Close?
We receive a lot of FHA-related questions by email that start with the words “how long.” How long does it take to get approved for an FHA loan? How long do they take to close? And so on. So I thought it might be helpful to compile a few of those FAQs onto one page. […]