Purchase a Home with an FHA Loan
When you begin to seriously consider purchasing a new home it is important that you follow some simple steps
to make sure that the process runs smoothly.
Analyze your debt to income ratio. This will let you
know what type of home you can afford based on your monthly income and expenses. The next important step in purchasing
a new home is to get pre-approved for a home loan. The peace of mind
that comes with knowing that your mortgage loan and credit report have been approved will allow you to shop
for your new home with confidence. And when you find a home and are ready to make an offer the fact that you
have already been pre-approved for your loan amount will give the seller confidence in you as a buyer.
FHA NEWS and RELATED ARTICLES
One type of question that sometimes arises about FHA loans-- Is there a no-credit-check version of an FHA mortgage loan? What is the criteria required for FHA loans that do not require a credit check and/or appraisal?
The FHA has published updates to the rules that affect how FHA Reverse Mortgages or Home Equity Conversion Mortgages are processed. Lenders must perform a financial assessment of all prospective mortgagors on all HECM transaction types.
Under most FHA programs, the borrower is required to make a minimum down payment into the transaction of at least 3.5% of the lesser of the appraised value of the property or the sales price.
Some of the most frequently asked questions about making a new home purchase using an FHA guaranteed mortgage loan involve the issue of the down payment.
One common misconception about FHA home loans and FHA refinance loans is that the FHA itself is the lender and issues money to the applicant. But this is not true.