FHA Credit and Your FHA Loan
Take the Steps to Review Your Credit
FHA loans provide great assistance to many first time home buyers by offering mortgage loans with lower down payments. While this is a benefit for many people, recent changes in policy may have put the loans just out of reach for some would-be homeowners with questionable credit history.
Home buyers looking to take advantage of great FHA loan benefits should already know they need to establish the best possible credit rating. Applicants with a better credit rating increase their options for mortgage or refinance loans. In order to qualify for the low 3.5 percent FHA loan down payment, applicants will need a FICO score of at least 580. Those that don't meet that criteria will have to put a down payment of 10 percent on the mortgage they want.
While FHA loans are known as a great service for people looking for help buying a house, applicants can make the process even easier if they take steps toward ensuring their credit history is in tip-top shape. The agency advises prospective home buyers to approach FHA loans with their best possible credit history to eliminate any potential risk of not qualifying.
When the Federal Housing Administration announced rule changes to help strengthen finances and protect against risk, one of the biggest changes was requiring a minimum FICO score of 580 to qualify for the attractive 3.5 percent down payment on mortgage loans.
FHA Loan Articles
Read About Mortgage News, FHA Updates, and Guidelines
HUD 4000.1, FHA Loan Applications, and Credit Reports
The new HUD 4000.1 handbook includes new rules about existing policy, revised language for some loan rules, and other changes. Has qualifying for an FHA mortgage under the new rulebook changed?
The FHA Refinance Loan Maximum Mortgage Calculation
There are many myths people have about FHA home loans. One is the nature of the required FHA mortgage down payment or maximum financing available. The borrower is required to make a minimum down payment on all new purchase FHA mortgage loans (3.5%).
Does Being a Co-Signer on Another Loan Hurt Your FHA Loan Application?
Some wonder: does being a co-signer on someone else’s financial obligation might affect an applicant’s chances for FHA loan approval? Does being a co-signer have any influence on how the lender views your credit or debt-to-income ratio?
FHA Streamline Refinancing: Appraisal Required?
It can be easy to get confused over the difference between lender requirements and FHA refinance loan standards--did you know that FHA loan rules for Streamline Refinancing permit the lender to require things the FHA rules don’t insist upon?
FHA Changes Loss Mitigation Policies
In April 2015, the FHA and HUD changed some of its policies in order to help FHA borrowers avoid foreclosure and keep their homes. No FHA loan applicant goes into the home loan or refinance loan process expecting to default on their mortgage payments sometime in the future.