fha loan questions: Residency And Occupancy: FHA Loan Rules
- 10/16/16 06:07 AM
FHA loan rules have requirements for both U.S. residency for potential borrowers, and occupancy for approved borrowers. Did you know that HUD 4000.1 states that an FHA loan applicant does not have to be a U.S. citizen in order to apply for an FHA mortgage or refinance loan? U.S. citizenship is not required, but legal documentation showing the applicant's status will be a condition of loan approval. The FHA loan program is open to both non-permanent resident aliens and lawful permanent resident aliens. The FHA loan rules also instruct the lender, "Non-U.S. citizens without lawful residency in the U.S. are not eligible … (1 comments)
fha loan questions: FHA Loans & Appraisal Rules: A Reader Question
- 08/26/16 01:42 AM
A reader asks, "I have been told by my realtor and the lender that an appraisal on a house I own will be on record for 180 days. They said that the appraised value will be on record and no other FHA appraisal can be made during this 180 day period. Is there a master list that other lenders and appraisers cross reference during this six month period? My reading of your blog indicates that if another FHA buyer makes an offer on my property. a different appraisal would need to be performed." HUD 4000.1 does indeed contain language that leads one … (2 comments)
fha loan questions: FHA Loans and Social Security Income
- 08/09/16 10:55 PM
A reader asks, "I dont understand if I have a 1099 and I have a benefits letter, and the letter that states at the end of the year what I am getting for the following year, why I am being asked or can be asked for something that states I will get social security for 3 years? There is nothing that says social security will give this to me or a name for it." FHA loan rules governing Social Security income are found in HUD 4000.1, page 195 under "Other Sources Of Effective Income". The rules require the lender to make a … (0 comments)
fha loan questions: FHA Loan Questions: Overtime Pay
- 07/01/16 08:50 AM
We get many questions in our comments section about how FHA loan rules may apply to a specific situation with regard to employment, pay, and verifiable income. Some potential borrowers want to know if having frequent changes of employment will negatively affect an FHA loan application (not necessarily) and others want to know if their new commission income will count towards their "effective income" (it depends on how long the commission income has been earned and whether it's likely to continue). Still others want to know how the question of overtime pay is handled in the FHA loan rulebook. Recently, one reader asked: "I … (2 comments)
fha loan questions: FHA Loan Questions: Co-Borrowers
- 06/26/16 01:55 AM
A reader asks, "My husband is a co burrower on his mothers mortgage loan and he has been asking her to remove his name from it but she hasnt. The mortgage has affected his credit and has made it hard to get a home of our own. Can his name be removed from the mortgage or is this something we need a lawyer for?" Before answering this question, let's examine how the FHA defines the role of a co-borrower. Page 128 of HUD 4000.1 states: "To be eligible, all occupying and non-occupying Borrowers and co-Borrowers must take title to the Property in their … (2 comments)
fha loan questions: FHA Loan Questions and Answers
- 06/04/16 12:55 AM
Tired of renting and looking to purchase a home of your own? There are many questions many first time home buyers or first time FHA loan applicants have. Here is a list of some of the most frequently asked questions about FHA mortgages. Is There An Income Limit For FHA Loans? No. FHA mortgages are not designed specifically for one type of financial situation or another. You cannot "earn too much" with the FHA single family home loan program. All wage earners are encouraged to explore their FHA loan options. Is There A First-Time Home Buyer Advantage Or Preference With FHA Mortgages? While an individual … (0 comments)
fha loan questions: Why Use An FHA Loan Mortgage Calculator?
- 02/04/16 11:22 PM
When you are planning your home loan, there are many aspects to consider. The selling price of the home is only one of those aspect; borrowers will need to save money for closing costs, a home inspection, and make a monthly budget for the mortgage amount, plus taxes and insurance. Some of the planning phase of your FHA mortgage involve things like requesting copies of your credit reports--things with concrete numbers such as FICO scores and payment amounts. But when it comes to figuring out your mortgage payment, arriving at the actual number can be a bit tricky. That's one reason why it's … (2 comments)
fha loan questions: FHA Mortgage Loan Limits For New Purchase Loans And Refinance Loans
- 01/28/16 09:33 PM
We've gotten some questions recently about FHA mortgage loan amounts, so it seemed like a good time to post the FHA loan rules found in HUD 4000.1 about how maximum loan amounts are calculated. There are FHA loan guaranty limits and FHA mortgage loan amounts--the two shouldn't be confused as FHA mortgage loan guaranty limits refer to the amount of money the FHA will guarantee for the loan, whereas the maximum loan amount is the highest amount for a specific transaction that the lender/FHA loan rules will allow. FHA loan rules say the maximum can be affected by the type of transaction. You … (0 comments)
fha loan questions: FHA Home Loan Questions: FICO Scores
- 01/18/16 01:00 AM
A reader got in touch recently in the comments section to ask a question about FICO scores and FHA home loan applications. "My new wife's credit score is 749 and mine is 620 due to an ugly divorce and transfer several years ago. We make over 287K per year with very little debt. Would we qualify for a loan together with a favorable rate? All debt paid except car loans." This question implies that FICO scores are the deciding factor for an FHA loan approval decision, and while credit scores are very important, they are not the only factor taken into account by … (3 comments)
fha loan questions: FHA Home Loan Down Payment Requirements
- 01/06/16 12:04 AM
A recent question in our comments section asked if the down payment for an FHA home loan could be financed, or does it need to come "out-of-pocket". This is an important factor for FHA single family home loans as there is what the FHA describes as a "minimum cash investment" or down payment required that a potential FHA home loan applicant will need to budget for. That down payment is, at the bare minimum, 3.5% of the "adjusted value" of the property. This is stated in HUD 4000.1 which says specifically: "Minimum Required Investment (MRI) refers to the Borrowers contribution in cash or … (0 comments)
fha loan questions: FHA Loan FICO and Credit Minimums Versus Lender Standards
- 09/17/15 10:55 PM
I get many questions about the difference between FHA loan minimum FICO score and credit requirements and the lender requirements for same. Here's one of the latest examples: "Seems like there is a lot of contradiction between what is on the FHA site and what the FHA Reps. are answering the consumers the questions. Why have FHA guidelines if the lenders dont have to follow them and can overrule them with their own? I have a credit score of 580 and a one time 30 day late mortgage payment in the past 12 months..." There were other details in the reader question, but … (0 comments)
fha loan questions: FHA Loan Rules: Income From Government Assistance, Military Benefits
- 08/13/15 12:50 AM
We've written elsewhere about the importance of the borrower's verifiable income when it comes time to fill out an FHA loan application and have the lender review the amount of money coming in versus how much goes out for financial obligations. A borrower's employment income is very important, but the job you have may not be the sole source of income at application time. For some applicants there may be military income, public assistance or other types of government income for the lender to consider. What are the FHA loan rules for this type of income? Is it allowed at all? The loan … (2 comments)
fha loan questions: FHA Loans And Pre-Payment
- 07/31/15 01:29 AM
One of the important selling points of an FHA mortgage loan is the basic differences FHA mortgages have from conventional loans; the lower down payment, more forgiving credit requirements, and a rule that a borrower is able to freely dispose of the property in any way he or she sees fit once the deal is closed and the borrower has taken up residence in the home. But there's another important difference between some conventional mortgages and FHA loans. Did you know that under the FHA loan program you cannot be penalized or charged for early payoff of the loan? HUD 4155.2 Chapter Three … (3 comments)
fha loan questions: FHA Refinance Loans For Investment Property?A Reader Question
- 04/25/15 02:13 AM
A reader asks, "I have rental property with a mortgage balance of $26000. The property shows a current value of $98900. I would like to refinance but seem to have a problem getting it refinanced? What would you advise me to do in order to utilize my equity to finance another investment." The scope of this blog is FHA single-family home loans, and we answer questions about FHA loans with that scope in mind. Non-FHA loan related questions that deal with general finance topics may or may not be outside our range of topics. The reader question above may have been submitted under … (3 comments)
fha loan questions: FHA Loan FICO Score Requirements
- 03/22/15 06:19 AM
We get many questions and comments about FHA home loans where FICO scores are concerned. Some borrowers seem to have doubts about whether or not they can qualify for an FHA mortgage loan or refinance loan because of their FICO scores and other financial qualifications. Consider this recent reader comment that came in: "Have a score of 565 & trying to Get A Home Loan." While there's no specific question mentioned, it's easy to see the reader is looking for some kind of information on FHA loan FICO score minimum requirements. Here's a chart that's printed in HUD 4155.1 which lays … (1 comments)
fha loan questions: Do FHA Appraisals Expire? A Reader Question Answered
- 03/06/15 05:13 AM
A reader asks, "How long do FHA Appraisals stay with the property in Georgia?" A search of the FHA official site at www.FHA.gov reveals a Frequently Asked Questions page that answers this query, but know that this FHA loan rule applies to all FHA loan appraisals, not just those that are completed in the state of Georgia. According to the FHA FAQ page titled, "Do FHA Appraisals Expire?" we learn the following: "The FHA appraisal validity period is 120 days for existing, proposed or under construction properties. If the Homeownership Center (HOC) determines that soft market conditions exist in certain … (2 comments)
fha loan questions: FHA Loans and Identity Theft Issues: A Reader Question
- 02/07/15 01:10 AM
A reader asks, "We have applied for a FHA loan and until yesterday, had no idea that that someone had filed a tax return under my social security number back in 2012. I have submitted the proper forms to the IRS, and they have my accurate 2012 tax return on file. Because I submitted the tax return late, I have never been contacted by the IRS regarding this." "It was not until I called to set up a payment program for the taxes that I owe, that it was brought to my attention. Is this a 100% deal breaker for the loan, … (0 comments)
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Bruce Reichstein
FHA / VA One-Time Close Construction to Perm Loans
FHA loan rules have requirements for both U.S. residency for potential borrowers, and occupancy for approved borrowers. Did you know that HUD 4000.1 states that an FHA loan applicant does not have to be a U.S. citizen in order to apply for an FHA mortgage or refinance loan?
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