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
Participating Lender Standards for FHA Loans
There are many common questions about FHA home loans. One area that confuses some borrowers or potential borrowers has to do with the difference between FHA single family loan rules and minimum standards, and individual lender standards.
The Facts About FHA Requirements on Caps and Minimums
Some borrowers want to know if FHA home loans have an income limit. The implication is often that FHA loans are intended for a certain type of applicant and that some borrowers might be disqualified for an FHA mortgage because they earn too much money.
HUD Announces Additional Funds for Housing Counseling Grants
A local, HUD-approved housing counseling agency can be very helpful for a borrower in the planning stages of a new purchase home loan, or a credit-check-required FHA mortgage loan refinance. Housing counseling can be valuable, especially for first-time home buyers.
The Advantage of Using an Online FHA Loan Calculator
Buying a home with an FHA mortgage means taking into account several variables. The selling price of the home is one of them, and borrowers need to budget for closing costs, a home inspection, plus taxes and insurance. An FHA mortgage calculator will help you estimate your your monthly mortgage payment amount.
How to Qualify for an FHA Reverse Mortgage
The FHA reverse mortgage loan program is known as the Home Equity Conversion Mortgage or HECM for short. Lots of people are interested in reverse mortgages--but who qualifies for the FHA version of the reverse mortgage and how do you know if your home is eligible for the loan?