Mistakes Made By FHA Loan Applicants
FHA Home Loans: Do Your Market Research Where You Want to Buy
Do you know what kind of housing market you want to buy your home with an FHA loan in? The nature of the housing market may not mean much to you at first, but the type of mortgage loan you seek might or might not be right for the market.
For example, are you trying to buy existing construction housing in a market that is experiencing a boom in construction? An FHA One-Time Close construction mortgage might be the option to consider where this type of mortgage is popular; you may find the terms of the construction loan, which may be a bit more strict in terms of FICO score requirements and the types of property you can build, to be an advantage for the right kind of property and time frames.
Conversely, if you seek a mobile home loan in a housing market where there just aren’t too many mobile homes or manufactured homes, you may need to look harder for a participating FHA lender who can work with your needs and goals.
It pays to examine the nature of the housing market as well as prices, location, and access to key services like shopping and day care.
FHA Home Loans: Family Planning and House Hunting
Some FHA borrowers don’t plan on starting a family and are looking for a home that is just the right size for them and a partner or for themselves alone. But for those in the market for a new home AND planning a family, it pays to consider purchasing a home you can grow into and not out of.
Buying a home with an extra bedroom or even a multi-unit property up to four units is a detail to consider.
Most FHA home loans permit borrowers to buy up to four-unit properties, with the caveat that any home you buy must be your primary residence and not an investment property.
Ask your FHA loan officer about an FHA home loan for multi-unit properties and consider your future space needs. It’s never a bad idea to anticipate a larger family than you’re currently planning; many people find themselves having to put up relatives for extended periods of time due to illness, job loss, or other circumstances. Will you grow into or out of your new home in a few years?
When It’s Time to Make An Offer: FHA Home Loans and The Home Inspection
Before you commit to purchasing the home you’ve found and want to buy with an FHA mortgage, be sure to pay for the optional but extremely important home inspection. The inspection is the most close-up look at the condition of your home and an FHA appraisal cannot do the same job as the inspection.
People who choose to pass on paying for a home inspection often wind up regretting their decision and paying thousands of dollars to correct problems that should have been detected before the purchase.
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