FHA Loan and Refinancing - Home > FHA Mortgage Experts
The loan officer that I am working with told me that I cannot incorporate the closing costs into the mortgage loan. Is this true?
Usually, you cannot incorporate all the closing costs into the loan, but some you can. There are fees that must be paid at closing.
After you sign the papers closing, how long does it take to get your keys to move into your new home? -Meme
After the closing, you should have your keys right away, unless there has been some specific issues worked out between you and the seller.
I was left two acres of land and a house that sits on it. My family and I are planning on making our home. We are 2 years past a discharged bankruptcy, and we are wondering if we would qualify for any loans to do improvements to the home so we can move in? -Teresa
Being only two years removed from a bankruptcy will make it tough, but there are programs that can help. The first place to look is for an FHA 203k construction loan. This is a rehab loan program for properties you can buy and then fix up.
Is there any type of loan that FHA has that is a no income verification or stated income verification? Do you always have to verify your income whether you are self employed or W2 employee? -Mike
Unfortunately not. To qualify for any FHA loan to purchase a home, you are going to have to verify your income. If you are self employed, you have to have been self employed for at least 2 years, and be able to document your income.
If I already have a home loan and wish to sell this home and make another purchase, will I be able to obtain a FHA loan?
Yes. You may only have one FHA loan at a time, but if you are selling your current home to buy a new one, you are still eligible for an FHA loan.
Regardless of the down payment, what percentage does the borrower have to provide? -Darlene
Currently, the borrower must provide a 3% down payment. However, there are several down payment assistance programs that can help with this. Also, current FHA legislation is working to remove the down payment requirement.
Will a first time buyer get money to buy furniture and pay off bills?
Generally speaking, no. When you qualify for a FHA loan, it is for the purchase of the home and some of the closing costs. There is no extra money available for use. In addition, if you have late bills that need to be paid off, it will be difficult to qualify for a FHA loan anyway.
What are the home requirements?
Please check out this FHA resource for information on specific home requirements for an FHA loan.
I was offered a job out of state and I am having a tough time selling my home. May I rent the home at a loss until I sell it?
Assuming you are referring to an FHA loan, no. You must live in the property for which the FHA loan was provided.
I am currently a graduate student looking to purchase a home. I plan to rent out two bedrooms to renters. I have saved for a down payment and would like to know the feasibility of securing a loan without a co-signer?
This is specific information that we cannot give a simple yes or no to. You will have to work with a lender to completely figure it out. However, since you have the 3% down payment requirement, as long as you can show decent income and credit history, it is possible you will qualify without a co-signer.
The home that I am interested in buying is still under construction. Can I qualify for an FHA loan to buy the house before it is finished being built? -Bernie
You may qualify for an FHA 203k loan. Not a lot of lenders will do them, but it is a program available for people who are building a new home with a FHA loan.
If the house I want to buy is being sold on the HUD foreclosure list do I have no qualify for an FHA loan? -Angel
No. You can purchase the home thru any loan program you choose.
If I cosign a private student loan for my son, will that affect my ability to refinance my home in the near future?
Probably not. Simply being a co-signer on a student loan won't affect you being able to refinance your home. In addition, student loans are in deferment for quite a while. While the loan is in deferment, you don't have to be making payments on it.
What are the negatives of getting a FHA loan when one is not a US citizen or permanent resident yet?
Only US citizens and resident aliens are eligible for FHA insured loans.
What if I do not have all my cancelled check for my 12 month rental history but have bank deposit slip from depositing rental payment in my landlord's account?
This is something you will have to work out with your mortgage broker and lender. It is likely they will accept something else other than cancelled checks showing your on time rent payments.
Does the FHA give loans on vacant land?
It is possible to get an FHA loan on vacant land, but you must prove that you are planning to build a home on the land and live in that home. It cannot be an investment property
With a FHA loan, can a person qualify for the down payment assistance program, particularly a first time home buyer?
Definitely. Many FHA down payment assistance programs are designed to help the first time home buyer.
How much can I expect to pay for closing costs? Does FHA require prepayment of yearly reoccurring costs like property taxes?
No, you will not have to prepay yearly reoccurring costs. You will have to pay the first year along with your closing costs. Learn more about FHA closing costs.
How long must student loans be in deferment in order to get approval for a FHA refinance? -Keikei
There is no set requirement on how long until you have to start paying on your student loans. However, they may be taken into account when calculating your income to debt ratios to see if you will qualify for a FHA loan.
I had a FHA loan and then sold my house. Can I get approved again? If I can, how long do I have to wait to qualify for an FHA loan? -Edmund
As long as you still meet the FHA qualification requirements, you should be able to qualify for another FHA loan right away. You many only have on FHA loan at a time, but since you sold your home this shouldn't be a problem.
Are FHA loans assumable? How long after purchasing with an assumable FHA loan can we get another person to assume the loan? Also, does the person trying to assume the mortgage still have to qualify under fha guidelines, specifically how does that work when another person is assuming your mortgage? -Krystal
Yes, you can assume a FHA loan, or if you are the seller, someone may assume your FHA loan. There is no specific time limit on when someone may assume your FHA loan, but they will have to qualify. No down payment requirements will apply however. The application process is much simpler, because it basically only consists of credit and income checks. Also, no property appraisal will be required.
Can I still qualify for an FHA loan if I have a recent foreclosure? If so, how long will I have to wait to apply? -Sean & Melissa
You can apply for a new loan 3 years after your bankruptcy or foreclosure. However, your debts must be discharged, and you must be able to show 3 years of good credit.
I am currently planning on buying a 4 plex to owner occupy. Do I need to have my current home sold in order for the underwriter to believe my intent to owner occupy my FHA financed 4plex? -Patrick
It is a requirement to live in a least one of the units of the 4 plex, but you don't necessarily have to sell your home. You could have two homes, but only the 4 plex with a FHA mortgage.
What about the proposed FHA changes we hear so much about? What is the status of that?
Keep up to date with new FHA legislation at our FHA modernization page.
What happens if I default on my FHA loan? -Ana
Anytime you default on a home loan, you will face foreclosure. This means the lender that lent you the money will have the right to seize your home. The only difference with an FHA loan, is that the lender is already guaranteed at least part of the loan by the government. Therefore, the lender won't lose money on the home if you default and they are forced to foreclose. Because of this, the lender is able to offer the borrower lower interest rates than they otherwise could.
Can a person do a FHA refinance on their home if they have been late on their mortgage several times?
Without knowing the specifics it is hard to say, but most likely not. The FHA requires that the borrower have no late mortgage or rent payments within the last 12 months.
We purchased our home in March of 2000 with the FHA Nehemiah program assistance. Can we rent out that home? Are there any restrictions on renting out our home?
No. One of the main requirements of an FHA loan is that you live in the home that the loan was used for.
In order to obtain an FHA refinance, will I need to have proof that the title on my manufactured home has been surrendered? -Sheila
In most cases, yes. Though you should speak with your broker for individual information that my pertain to your specific case.
How many years before one can purchase after bankruptcy?
Generally speaking, bankruptcies have to be at least 2 years removed before you will be qualified for a home loan. There are specific programs that may get you a loan sooner, though they typically come with very high interest rates.
I need to refinance my loan. I don't have enough income verification but have good credit scores. What loan is available for me?
In most cases, you will be able to refinance your home loan without income verification. Specifically, most home equity loans require no income verification.
I was approved for only $110,000 to purchase a home. Can I take out another loan on top of this one?
While it is possible to take out more than one loan, it may not be wise. Probably the reason you were only able to qualify for that amount is because that is all the lender feels you can afford with your current financial situation. It may be advisable to find a home within that budget, and look at upgrading in the future.
Who normally pays closing cost in new house financing? -Trace
While there are no set requirements, buyers typically pay the following closing costs:
Sellers closing costs typically include:
What makes an FHA payoff different from a conventional one? -Angela
There is no real difference in how you pay off either type of loan. The difference is really only that FHA loans are insured to the lender by the government in case the borrower should default. This protects the lender and allows them to offer lower rates than if the loan were not insured.
What types of homes can be built with a FHA loan? -Aly
You can use the FHA program to purchase single family homes and condominiums. You can also use an FHA loan to purchase up to four unit buildings, as long as you live in one of them.
Can you pay off a Chapter 13 Bankruptcy with a FHA loan? -Bryan
This depends how long you have been in bankruptcy. If you have been in a Chapter 13 for over one year and have made all payments on time, you may be able to qualify for FHA financing. Another option is refinance and pay off your bankruptcy with a home equity loan.
Are there any restrictions on using more than one down payment assistant programs? Can we use 4-5 different kinds of assistant programs? -Nahid
Yes. Combining down payment assistance programs is sometimes called 'layered financing.' Keep in mind not all programs can be combined, but your lender can help you decide the programs that will be most advantageous for your situation.
Can a judgment from 8 years ago prevent me from getting a mortgage approval?
This depends on the specifics of the case, but most likely not. While it shouldn't prevent you from getting approved for a home mortgage, it could have an effect on the rate you will receive on your loan.
I have a FHA loan, but the house needs serious repairs. Can I use a VA refinance to make repairs? – Shawn
If you are eligible, yes, you can use a VA refinance to make home improvements. If you are not eligible for a VA loan, you can also use a FHA refinance to make home improvements or repairs.
Can you get a FHA loan or refinance on an investment property?
Not usually. One of the requirements of a FHA loan is that you live in the property that has the FHA loan.
I'm trying to buy a mobile home where I own the land. What are the FHA requirements for the house foundation?
Please use this home resource provided by the HUD for more information on foundation requirements for FHA financed homes.
When can I apply for another FHA loan? I have had this loan for 7 years. -Dale
In most cases you cannot have more than on FHA loan, except for these few exceptions. You may choose to refinance your FHA loan, and you can do this anytime, provided you have made enough payments to have a LTV of 90% or lower.
What is a 210 Warranty and how to I obtain one?
A 210 Warranty is a warranty that provides protection for the seller and the buyer during the sale of pre-owned homes. It provides a type of insurance, primarily for large appliances. Both the seller and buyer are covered for the electrical and heating systems, plumbing and water heaters. Additionally, the buyer is covered against damage to the air conditioning, alarms and other appliances. Find more information on the specific coverage here. Most insurance companies will be able to provide you with this type of warranty.
Does the Good Neighbor Next Door apply to conventional loans or is this for FHA loans only.
The Good Neighbor Next Door applies to VA Loans, FHA Loans, conventional loans, or cash.
I was about to buy a condo, I was approved for a VA home loan. Now 2 weeks before closing the lender is saying the HOA/condo is not approved. I cannot find anything to back this up and they have no answers for me.
There could be some specific reason why this condo is no longer approved. It may be a question of your finances, or it could be the condo itself. There is no way for us to know the reason for this change in approval without the information.
With an FHA growing equity loan, will a borrower be able to cancel mortgage insurance much sooner than on other types of fha mortgages?
You have within 3 business days from signing any FHA Loan to cancel the loan. Typically, borrowers cancel their mortgage insurance when the equity of their home has reached 20% of the original price of the house. You may have the ability for a growing equity loan to reach that amount faster than another FHA loan, but depending on the plan you make with your lender, it may not be any faster than a regular FHA Loan.
I am getting ready to close on an FHA purchase and my husband is not on the loan. Can I add him to the title at closing? -Lisa
Some state require that the non-purchasing spouse be on the title also in order to make it valid. However, each state is different in how they conduct adding a spouse to the title. Your loan officer most likely knows that right process for your particular state. I would talk to your loan officer again and have him/her walk you through the process.
Is it better to be married to get a loan? -Holly
Your marital status makes no impact on whether you are approved for a loan. The only time that it would matter is if your husband is your co-signer, in which case, he would have to include all of his information with yours. Individually, it does not matter.
If the status of a condo is 'FHA approval withdrawn due to pending litigation,' is there any way to get it back to an approved status? -Joi
Your best bet at this point is to meet with your lender and discuss selling your condo. This will save you money as well as your lender. Depending on your financial status, your lender can best advise you on what to do.
What is the yearly income that you need to make in order to get approved for a house? -Silvia Argueta
There is no set yearly income that you have to make in order to get approved for a loan to buy a house. The factors surrounding whether you will be approved for a loan are all encompassing of whether you are in debt, your credit history, where you live, what house you want to buy, and several other circumstances. By visiting an FHA Calculator, you can determine what you have to make by including your other financial history into the loan equation.
How do you get approved for a home if you still owe on another home that you need to see? -Kate
You need to explore the option of a 'combination loan' if you are looking at paying for another mortgage. This loan can help you primarily when you are looking at making the down payment on your second home. There are two different types of combination loans. The 80/10/10 is a loan in which you get a house for 80% of the purchase price, you put down 10% of your own funds, and borrow the remaining 10% of the funds for a second mortgage. The second combination loan is referred to as the "piggy back loan," in which some buyers use to avoid a private mortgage insurance or a PMI. This is due to the fact that PMIs are not income tax deductible.
Why do a lot of banks not loan on properties over 10 acres? -Kevin Peterson
An FHA loan can be loaned to someone whose property is over ten acres, however the loan will only include the price of the house and the first ten acres of the property. This is a result of the property falling under the category of an Agricultural Loan. It is more beneficial to the borrower to apply for an Agricultural Loan if the property is has a large number of acres.
Do I have to get a good credit to get a FHA loan?
While obtaining an FHA Loan with bad credit is easier than obtaining a conventional loan with bad credit, there are still several guidelines that must be met. You must provide your credit history when applying for an FHA Loan. There must be two lines of credit, such as rent history and utilities, that the underwriter can look at to determine if you qualify for a loan. Look at more credit information to see all requirements you must fulfill.
Is Mortgage Loan Place a part of FHA or a separate entity? What is the relationship between the two? -J. Andrea
Mortgage Loan Place puts people in touch with qualified lenders, and has NO relationship with the FHA.
We have a single wide mobile home with a fluctuating interest rate. We still owe as much as we started with 10 years ago and we just don't know what to do. Do you have any suggestions on how we can get out of this mortgage and get a home loan?
The best step for you to take at this point is to refinance your home and try to get a lower interest rate. You can apply for a home loan if you have paid all of your mortgages on time, if you have a steady income, and you are not in debt. You need to talk to a local lender to see if your finances would qualify you for an FHA Loan.
Does an FHA growing equity loan have lower initial interest rates than an FHA fixed or adjustable rate mortgage?
Adjustable Rate Mortgages (ARM) have lower initial interest rates than Fixed Mortgages, and Growing Equity Mortgages have interest rates that are usually fixed at several points below the market. However, because the goal of a Growing Equity Mortgage is to increase the equity on your home, the payments will increase depending upon the agreed price. The advantage of an ARM is that you can qualify for that type of loan with a lower income than you could while applying for a Fixed Mortgage. However, the interest on an ARM may increase over time, so you need to plan on a future income increase with the ARM.
Can a multi-family property with 2 structures qualify for an FHA loan?
Yes, a multi-family property with 2 structures can qualify for an FHA Loan. The maximum loan for improving a multi-family property is $12,000 per family unit, and the loan cannot exceed $60,000.
Is an FHA Loan fixed or is it an ARM?
An FHA Loan mortgage can be fixed or adjustable. There are actually several different types of FHA Loan Mortgages available, it is just a matter of discovering which one is best for you.
We are being offered an FHA loan where the interest starts at 4% and increases to 5, 6 then 7 at year 4. What are the negatives to this loan?
The negative aspects of this loan include the fact that you need to prepare for an income increase over the years in order to keep your payments up on time. You need to speak with a local lender in order to ensure that your income over the next few years will cover your payments.
Can you co-sign a loan if you are already a homeowner?
Yes, you can co-sign on a loan if you are already a homeowner. You will need to send in as much financial documentation as the person you are co-signing for. The lender needs to know that the co-signer has his/her finances in order as well as the primary borrower.
I have been trying to refinance my conventional loan to a FHA Loan. I have never been late on a mortgage payment, but I have collections and charge offs I wanted to pay with the cash out money. Do I have to pay off collections before or can I use the funds from closing to pay collections?
Yes, you can use the money from your closing costs to pay off your collections and charge offs. However, while you are reducing your individual debt to income ratio, this method of paying off debt is not recommended. It is recommended that you pay off your collections before you receive money from the cash out refinancing process. Also, you should really consult with a private mortgage lender to see what your best options are.
I was wondering how much money over the value of a home could be borrowed and rolled into the mortgage. I found a cheap house that would need a lot of work, and would need a good deal more than just the house cost. -Jeremy
The maximum FHA Loan is dependent upon several factors. For example, your location, your credit history, and your debt to income ratio can all influence how much money you are eligible for from a FHA Loan. If you visit an FHA Calculator, you can find out how much money you are quailfied to receive.
Browse More Pages --- 1 | 2 | 3 | 4 | 5 | Next Page >>
Mortgage Loan Place.com has positioned itself as a leading FHA lender on the web and our experts are here to help guide you through the process of applying for a loan, or to simply answer a few of your questions. Is an FHA loan right for me? It's time to find out.