Summary: This article explains the credit report requirements for FHA loans, as of January 1, 2015. It is based on guidelines and requirements outlined in HUD Handbook 4155.1, as well as their Single-Family Housing Policy handbook. The Federal Housing Administration (FHA) loan program is managed by the Department of Housing and Urban Development, or HUD. […]
FHA Document Checklist and Documentation Requirements
Do you plan to use an FHA loan to buy a house in 2019? If so, you should be prepared to supply a mountain of financial paperwork. It’s a necessary step in the application, underwriting and approval process. Below, we have provided a checklist of FHA documents to help you understand the documentation requirements for […]
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: How much house can I afford with an FHA loan? How much of a mortgage loan can I qualify for? How much money do you have to make to […]
Am I Qualified for an FHA Insured Home Loan in 2015?
Reader question: “I have heard that FHA home loans are perfect for home buyers who don’t have a big down payment saved up, which is the situation I am in. Is this true? Secondly, how can I find out if I’m qualified for an FHA loan in 2015? What are mortgage lenders looking for these […]
The First 3 Steps to Buying a Home With an FHA Loan
Countless articles have been written about the steps to buying a home with an FHA loan. While many of them do a good job covering the basic steps in the purchasing process, they often start too far into the process. They skip the preliminary steps that occur (or should occur) before you even submit a […]
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 […]
Can I Get an FHA Loan With a Credit Score of 580, 600, 650?
It’s one of the most common questions we get from our readers: “Can I qualify for an FHA loan with a credit score of 580, 600, 650, 680 or … [fill in the blank]?” Unfortunately, this is not a yes-or-no question. The Department of Housing and Urban Development (HUD) has some specific guidelines for borrower […]
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 […]
How an FHA Adjustable-Rate Mortgage (ARM) Works, and When to Use It
FHA-insured home loans are available with both fixed and adjustable interest rates. There are certain pros and cons associated with each type. The article explains how an FHA adjustable-rate mortgage (ARM) loan works, and when it might make sense to use one. Most home buyers who use ARM loans do it to save money during […]
3 Common FHA Loan Problems, and How You Can Avoid Them
Some FHA borrowers sail through the mortgage lending process with no issues whatsoever. If you’re lucky, you’ll be one of them. Other borrowers encounter FHA loan problems that can delay the closing process or, at worst, derail it entirely. Awareness is the first step to avoiding such problems. By understanding what can go wrong during […]