Five More FHA Loan Questions
October 15, 2023
New borrowers often have questions about the FHA home loan journey. Here are some of the most popular. When reading the answers, remember that many issues surrounding FHA loan approval are circumstantial. The answers you need may depend on your personal circumstances, as we’ll explore below.
How Much Should I Save for My Home Loan?
A specific dollar amount isn’t possible to offer here, but in general, you should expect a down payment minimum of 3.5% of the sale price of the home and between 2% and 6% of the total loan amount for closing costs.
If you want to know the FHA loan limits for your county to help you estimate what these expenses might be, you can do the math using the FHA limits for a single-unit home all the way up to four units.
My Credit Is not Perfect. Can I Still Apply for an FHA Mortgage?
You do not need perfect credit to be approved for an FHA mortgage. FHA FICO score requirements for the lowest down payment start at 580. Lender requirements may vary.
If at least a year has passed since your last late or missed payment on a financial obligation, and you have been in the same type of job (or better) for the past two years, your chances of being approved for an FHA mortgage are higher than you might think.
What Are the FHA Loan Approval Rules for First-Time Homebuyers?
The FHA loan approval rules are identical for all borrowers, first-time applicants or not.
You are expected to have FICO scores of 580 or higher to meet FHA standards for the lowest down payment, and you will also have to meet lender requirements for credit and employment.
How Soon Can I Refinance an FHA Mortgage?
Typically you should expect to live in the home for at least six months and make six months' worth of mortgage payments (not all at once) to qualify for various types of FHA refinance loan options.
Can I Become a Landlord With the Property I Buy With an FHA Loan?
Yes, but only if you occupy the property. At least one person named on the loan must occupy the property as their primary residence for all FHA purchase loans under the FHA 203(b) program.
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RELATED VIDEOS:
Your Mortgage Payment Schedule Is Called Amortization
Information About the Balloon Payment
Reliable Borrowers Can Qualify for a Cash-Out Refinance
How Much Should I Save for My Home Loan?
A specific dollar amount isn’t possible to offer here, but in general, you should expect a down payment minimum of 3.5% of the sale price of the home and between 2% and 6% of the total loan amount for closing costs.
If you want to know the FHA loan limits for your county to help you estimate what these expenses might be, you can do the math using the FHA limits for a single-unit home all the way up to four units.
My Credit Is not Perfect. Can I Still Apply for an FHA Mortgage?
You do not need perfect credit to be approved for an FHA mortgage. FHA FICO score requirements for the lowest down payment start at 580. Lender requirements may vary.
If at least a year has passed since your last late or missed payment on a financial obligation, and you have been in the same type of job (or better) for the past two years, your chances of being approved for an FHA mortgage are higher than you might think.
What Are the FHA Loan Approval Rules for First-Time Homebuyers?
The FHA loan approval rules are identical for all borrowers, first-time applicants or not.
You are expected to have FICO scores of 580 or higher to meet FHA standards for the lowest down payment, and you will also have to meet lender requirements for credit and employment.
How Soon Can I Refinance an FHA Mortgage?
Typically you should expect to live in the home for at least six months and make six months' worth of mortgage payments (not all at once) to qualify for various types of FHA refinance loan options.
Can I Become a Landlord With the Property I Buy With an FHA Loan?
Yes, but only if you occupy the property. At least one person named on the loan must occupy the property as their primary residence for all FHA purchase loans under the FHA 203(b) program.
------------------------------
RELATED VIDEOS:
Your Mortgage Payment Schedule Is Called Amortization
Information About the Balloon Payment
Reliable Borrowers Can Qualify for a Cash-Out Refinance
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