Editor’s note: This article was update in April 2022 to reflect current policies and guidelines regarding MIP cancellation. Over the years, we have received a lot of questions about canceling mortgage insurance on FHA loans. People want to know: How do I cancel the annual MIP attached to my FHA loan? How long before I […]
Q&A: Why Would the FHA Not Approve a Home for Purchase?
Reader question: “My husband and I are thinking about using an FHA loan to buy a home in our area. But a lot of the homes around here are fixer-uppers, older properties, etc. I’ve been told we might have trouble getting a HUD loan for this reason. Why would FHA not approve a home? Are […]
FHA Property Condition Requirements in 2018
The newly revised handbook for FHA loans (HUD Handbook 4000.1) took effect in September 2015. That means it applies to all government-insured home loans originated in 2018. It’s the “law of the land,” so to speak. Among other things, the new handbook explains the minimum property condition standards and requirements for homes purchased with an […]
Allowable FHA Closing Costs for Home Buyers
Do you have questions about allowable FHA closing costs in 2018, particularly the ones paid by the home buyer / borrower? If so, you’re in the right place. Below, you will find a list of closing costs that mortgage lenders are allowed to charge for FHA loans. Allowable FHA Closing Costs The Department of Housing […]
FHA Self-Employed Borrower Income Guidelines for 2016
Editor’s note: The guidelines below apply to automated underwriting using FHA TOTAL Mortgage Scorecard. HUD offers a separate set of guidelines for manual underwriting. Self-employed home buyers are eligible for FHA loans. But they have a few extra “hoops” to jump through, compared to borrowers who work for someone else. Requirements and guidelines for self-employed […]
Do FHA Lenders Check My Credit Score Again Before Closing?
Reader question: “At what point during the home-buying process do FHA mortgage lenders check my credit score? I’m guessing they do it at the start of the process, when I first apply for a loan. But do they run a second credit check before closing?” Here’s the short answer: Most lenders who offer FHA loans […]
Difference Between FHA and Conventional Loans
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 […]