FHA Mortgage Mortgage Details – FHA Information and Views
What Do You Need To Know About FHA Home Loans? Aside from dispelling the popular myth that FHA mortgages are only for first time buyers or economically disadvantaged home hunters, there are many things you should know about the FHA loan program before you apply.
FHA loans differ from other mortgages in that they have lower creditworthiness requirements, low down payments, and no penalty for early repayment of the loan.
FHA home loans are meant for any borrower who can qualify financially and you don’t have to worry about income limits or other need-based restrictions.
There are a few things you should know about FHA loans that apply to any home buying experience in America. One of these? No matter what your lender, real estate agent, or anyone else says or calls the evaluation process, the evaluation is not an inspection.
DO NOT rely on the rating alone to tell you the condition of the house, you will not get a fully informed answer to this very important question.
Appraisals are tools for the lender and not for the borrower. As simple as that.
There are many people who have made the mistake of buying a home without a home inspection and relying only on the valuation. These borrowers can face expensive and disappointing problems after purchasing an unaudited home.
Estimates are not intended to reveal any / all of the problems with the home and they simply do not give you a fully informed view of the home.
There is another simple mistake to make when looking for a home – some people look at the FHA loan limits by counties in areas where they are buying a home.
It’s easy to accept the first few numbers you see on the list of credit limits, but don’t forget to check the credit limits for single family homes AND apartment buildings with up to four residential units.
Remember that a property with four units has a higher credit limit than a house with one unit. Your creditworthiness increases with the size of your home, provided you are otherwise financially qualified to be eligible for the mortgage.
Some borrowers shy away from negotiating a home purchase, but this is a big mistake. Why?
Because you can negotiate with the seller of the home you want, the FHA loan rules can allow the seller to pay up to six percent of the sale price of the home as a closing cost.
And what if you’re ready to speak to a loan officer about getting the loan you want? Don’t forget to specify the type of home loan as precisely as possible.
Some people want a house they can move into right away, others want a house that they can buy and remodel or renovate. There are several FHA loans for these two options – be sure to let the lender know if you want to buy an existing home that can pass a valuation and home inspection, or if you are more interested in finding a fixer-upper home.