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Fha guidelines

  • Question : All variables being equal, will an FHA loan have a smaller interest rate than a conventional loan? Answer : Conventional loans are much more difficult to obtain than an FHA loan, and interest rates are about the same. The requirements for acquiring a conventional loan are much more stringent if you have filed for bankruptcy, and they do not allow for alternative uses of credit like FHA Loans do. FHA Loans also have an adjustable interest rate that is looked at annually. To determine what your interest rate will be if you are approved for an FHA Loan, you should use a FHA Calculator.
  • Question : Can a multi-family property with 2 structures qualify for an FHA loan? Answer : Yes, a multi-family property with 2 structures can qualify for an FHA Loan. The maximum loan for improving a multi-family property is $12,000 per family unit, and the loan cannot exceed $60,000.
  • Question : Can you co-sign a loan if you are already a homeowner? Answer : Yes, you can co-sign on a loan if you are already a homeowner. You will need to send in as much financial documentation as the person you are co-signing for. The lender needs to know that the co-signer has his/her finances in order as well as the primary borrower.
  • Question : Can you explain exactly what the FHA Underwriter does? I'm confused on that process. -Robert Answer : After your file has been submitted to the investor, the underwriter will review your information and come to a decision about your loan. This process can take between 2-5 days. The underwriter makes sure that your information fulfills the guidelines set forth by the FHA, such as employment history, income and debate ratios, etc. They will either approve you for a loan, suspend your file because more information is needed, or they will deny you a loan all together.
  • Question : Can you have two FHA loans at the same time? Answer : It is possible to have two FHA loans at the same time, however, it is not usually approved. The underwriter is less likely to give you another loan when you are already paying one off. The main concern of a lender is that you will be able to pay what you owe, when you owe it, and if you are trying to pay for two loan simultaneously, the lenders will have doubt as to your ability to pay them the money that is owed. Also, location may have an impact on whether or not the lenders in your area are more lenient when it comes to giving a second loan. It is best to consult with a local lender.
  • Question : Do I need certain credit scores? Answer : While credit scores are not required, they are certainly recommended. Credit scores enable lenders to predict whether you will make your credit payments on time. Credit scores also determine whether lenders will charge your interest rate or credit limit on a credit card or sent it to you in the mail. Having good credit can make your financial transactions much easier and can end up saving you a lot of money. This is why it is important to have a credit score. Most people's credit score falls between 600 and 700.
  • Question : Does an FHA growing equity loan have lower initial interest rates than an FHA fixed or adjustable rate mortgage? Answer : Adjustable Rate Mortgages (ARM) have lower initial interest rates than Fixed Mortgages, and Growing Equity Mortgages have interest rates that are usually fixed at several points below the market. However, because the goal of a Growing Equity Mortgage is to increase the equity on your home, the payments will increase depending upon the agreed price. The advantage of an ARM is that you can qualify for that type of loan with a lower income than you could while applying for a Fixed Mortgage. However, the interest on an ARM may increase over time, so you need to plan on a future income increase with the ARM.
  • Question : How do I convert my 5/1 arm? Answer : After the first five years of paying the ARM interest rate, in which none of the payemnts go towards a retiring principal. After this time, then it becomes an adjustable-rate mortgage with both principal and interest payments.
  • Question : How much would I expect to pay in mortgage insurance on per month on a $170,000 loan? Answer : There are several factors that contribute to how much you will have to pay on mortgage insurance for a $170,000 loan. Since these factors include such information as your own yearly income and other private information, you should go to FHA Calculator on our website, and this should help you find your estimated monthly payments.
  • Question : I just had a few questions about FHA loans. Do lenders require PMI with FHA loans? What benefit do FHA loans provide in comparison to other companies? Answer : Yes, lenders do require a private mortgage insurance (PMI) to ensure that the total amount of the mortgage will be paid to the lender if the buyer defaults. Usually the PMI will not be put into effect until 20% of the mortgage has been paid. Find out more about the benefits of FHA loans compared to the benefits provided by other companies.
  • Question : I took out an FHA loan in November 06 for my first home. Now, I am looking to sell my house and move back in with my parents. Besides paying back closing costs, what else do I need to be aware of? -Ki Answer : When closing your FHA Loan, it is advised that you do not rush this process and forget any payments that still need to be paid. It is best to contact your lender and make sure that you don't owe any other fees besides what must be paid for closing costs. It is important thoroughly check what payments you have made and what you still need to make.
  • Question : I was wondering how much money over the value of a home could be borrowed and rolled into the mortgage. I found a cheap house that would need a lot of work, and would need a good deal more than just t Answer : The maximum FHA Loan is dependent upon several factors. For example, your location, your credit history, and your debt to income ratio can all influence how much money you are eligible for from a FHA Loan. If you visit an FHA Calculator, you can find out how much money you are quailfied to receive.
  • Question : In the FHA FAQ you say that you must show a stable 3 year income. I am of younger age and am curious as to how important those 3 years are. I am currently and will be making enough money to cover any Answer : Lenders like to see a few years of steady income, but it certainly is not the end all to if you will be able to qualify for a home loan. Certain factors like age, current and potential income can be taken into account as well. For example, if you are a recent college graduate, who didn't hold a job during college but have just started your career and have decent credit, it is likely you will still me able to qualify for a loan.
  • Question : Is an FHA Loan fixed or is it an ARM? Answer : An FHA Loan mortgage can be fixed or adjustable. There are actually several different types of FHA Loan Mortgages available, it is just a matter of discovering which one is best for you.
  • Question : Is Mortgage Loan Place a part of FHA or a separate entity? What is the relationship between the two? -J. Andrea Answer : Mortgage Loan Place puts people in touch with qualified lenders, and has NO relationship with the FHA.
  • Question : My dad has a FHA Loan. Can he co-sign for my FHA Loan? Answer : Yes, he can co-sign for your FHA Loan. However, he will have to provide the same amount of documentation that you will when applying for the loan. The underwriter may be less likely to approve the loan seeing that he is already paying on another loan. The reason for this is because, when agreeing to be your co-signer, your father is agreeing to take over the payments on your loan if you are unable to for some reason. If his financial documents are in order, however, you have good chance of being approved.
  • Question : What is the difference between FHA Loans and VA Loans? -Charlotte Answer : FHA Loans and VA Loans are very similar. However, only veterans may obtain a VA Loan, whereas FHA Loans are available to all applicants who meet the financial requirements. VA Loans are commonly less expensive than regular loans. Find out more about FHA Loans vs. VA Loans and determine which loan is best for you.
  • Question : What is the difference between the lenders underwriter and the FHA underwriter? -Kevin Answer : The lending companies can actually employ underwriters who have been trained by the FHA Underwriter Registry. The FHA underwriters are simply employed by the FHA. The job that either underwriter does is exactly the same, and they are trained in the same techniques.
  • Question : What is the maximum FHA Loan limit in Charles County, Maryland? Answer : The maximum FHA Loan limit varies according to location. You need to use a loan expert. to determine what the maximum FHA Loan limit is in your area.
  • Question : What is the usual time frame that the FHA takes to approve you for a loan once they have received your paperwork? Answer : The time frame for receiving approval from the FHA varies. It can take anywhere between 6-8 weeks following the arrival of your paperwork for the FHA to approve you for a loan.
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