Federal Housing Administration officials announced today that they will reduce the annual mortgage insurance premium for FHA loans by a quarter of a percent. The lower MIP rate will apply to most borrowers who use the FHA program to buy a home in 2017, and will save them an average of $500 per year. The […]
On December 1, 2016, the Department of Housing and Urban Development (HUD) announced the revised FHA loan limits for 2017. The maximum loan limits for purchase mortgages were increased in most counties across the U.S., and will remained unchanged in some counties. There were no counties with a decrease. Next year, FHA loan limits for […]
FHA loans are one of the most popular mortgage financing products for home buyers these days. They’re especially popular among first-time buyers, who often lack the funds for a large down payment. (FHA allows for a down payment as low as 3.5%.) But with home prices rising steadily across the country, some housing markets are […]
Want to use an FHA-insured mortgage loan to buy a house in 2016? If so, you’ll need to make a down payment of at least 3.5% of the purchase price or appraised value. But the money doesn’t have to come from you directly. It can be donated by a friend, a family member, or even an employer. Here’s an update on FHA down payment guidelines for 2016, based on the new HUD handbook.
The Department of Housing and Urban Development (HUD) routinely makes changes to the FHA loan program. Earlier in December, they announced a program change that will affect 188 counties across the country. Borrowers in those areas will have higher loan limits in 2016, due to rising home values.
Many home buyers who choose the FHA loan program are surprised to learn their credit scores are below the mortgage lender’s minimum cutoff, even though they meet the Federal Housing Administration’s official requirements. It happens fairly often, in fact, and it has to do with something called “overlays.” According to the Department of Housing and […]
According to a recent article in the Washington Post, Quicken Loans offers FHA loans to borrowers with credit scores as low as 580. This is significant for two reasons: (1) They are the largest non-bank retail mortgage lender in the U.S. (2) Most lenders require a score of 600 or higher.
Can you qualify for an FHA loan with “disputed derogatory credit” like late payments? Yes. Will you have more hoops to jump through? Probably. The new HUD handbook explains the requirements for borrowers who fall into this category, and for the underwriter who must make the call.
The Federal Reserve recently announced it would maintain its current monetary course at least until October. So we might enjoy those super-low mortgage rates for a while longer. In related news, the average rate for a 30-year FHA-insured home loan recently sank to a 4-month low, based on our own surveys.
Want to get an FHA loan? You better take a close look at your credit score and your debt-to-income ratio. Either one of these things could derail your mortgage approval, if they fall outside of the guidelines set forth by HUD. The FHA’s new Single Family Housing Policy Handbook explains these rules in detail. Here’s a quick overview.