Problems That Can Delay Your FHA Home Loan (Part One)
Do you know what these potential problems are? Some may be preventable in the planning stages of your loan, others may be things that happen in the course of getting your loan approved or closing the deal.
FHA Loan Problems: Applying Too Soon
Giving yourself plenty of time to financially prepare for a home loan is not only good advice, in some cases it can save you from being rejected for the mortgage.
After Bankruptcy or Foreclosure
Borrowers who apply for FHA home loans too soon after a bankruptcy, foreclosure, or a deed-in-lieu of foreclosure must wait out mandatory “seasoning periods” or waiting times may be required before they are permitted to apply for a new mortgage.
Delinquency On A Home Loan
Any borrower delinquent on an FHA loan will be required to wait a minimum amount of time from one to three years (or more depending on circumstances) before being allowed to apply for a new mortgage.
The seasoning period for a delinquent FHA mortgage does not apply in cases where a refinance or loan modification is made to help the borrower avoid foreclosure on a home currently secured by an FHA mortgage. But it’s crucial to know that skipped payments are not allowed.
A lender may be willing to forgive or write off a certain amount on the mortgage, but one way or another the FHA loan will be brought current as a condition of such transaction.
Appraisal Issues Can Delay Your Home Loan
FHA home loans for new purchases require an appraisal regardless of whether the home is a suburban home, mobile home, condo unit, etc.
That appraisal may result in one or more corrections or repairs required as a condition of loan approval. In many cases these corrections are assigned with a caveat that they must be completed as a condition of loan approval.
If those corrections require more time than you have before a projected or estimated closing date, you may find that the closing date must be changed to accommodate the required fixes. It is never safe to assume that your closing date is also a good move-in date because of issues like these.
FHA, VA, and USDA: One-Time Close Loans
Do What You Can to Avoid Foreclosure
Homes Financed With FHA Loans Must Be Owner Occupied
FHA Programs for First-Time Homebuyers
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