Steps to Buying a Home in Florida

Realtors – Choosing the right Realtor to represent you as the buyer is very important. The Realtor should have knowledge and experience in most aspects of the real estate arena so that they can work for you effectively and efficiently in your best interests with as little or no stress to you. This includes standard, short sale, foreclosed on properties and new construction. (We at Trascojac Properties have experience and knowledge in these along with probate and investment properties).

Lender – It is important to shop around for a lender who has knowledge and experience with the loan program you are using, and who is easy to work with, available when you need them and if not because they are busy with other work tasks return calls and emails in a timely fashion. (We work with many lenders who also work hard in your best interests). We can provide you with their information to get prequalified (if you qualify) to begin the home hunting. You can also shop around others to get the best interest rates, loan generation fees and so on because there is no mortgage loan or lender that is “One size fits all”

Mortgage Loan types:

                      First time home owner down payment assistance programs

                      FHA & FHA 203(k) rehab loan

                      USDA

                      VA & VA renovation loan

                      Fannie Mae HomeReady

                      Conventional & Conventional renovation loan

Looking for your home:

Have an Idea of what you want – Knowing what you want that is within your budget before you start the home search is the beginning of your journey to home ownership with little or no stress. What you want may change en-route, but will remain little or no stress.

                      How many bedrooms and bathrooms

                      What sqft under air

                      How many car garage

                      Type of construction

                      Age of house

                      Move in condition or are you prepared to fix up

                      Type of utilities

                      Location

                      Good Schools

                      Quick and easy access to work

There is much more. We get into the nuts and bolts on our home search forms and while during the search because every property and buyer is unique. No two are alike.

Homeowner Association or Condominium Association – If you are buying a condominium or in a homeowner’s association community, know the rules and regulations along with the fees to know if an HOA is for you or not.

Modifications to Your Home – When buying in an HOA, there are strict rules and regulations and local ordinances and boards that dictate .

Lead-Based Paint – Houses built before 1978 may contain lead-based paint, a potential health hazard. Don’t let this put you off these home though because it is easily determined if there is lead paint or not.

Chinese Defective Drywall – Houses built before between 2001 and 2009 there was a drywall shortage, so drywall was imported here from China during which later was determined to be defective and a potential health hazard. Don’t let this put you off these home though because it is easily determined if there is Chinese defective drywall or not.

Flooding – Be sure your home is not in a flood zone and prone to frequent flooding. Aside from the irritating, inconvenient and cost of your home’s contents being destroyed, your insurance premium will be very high.           

Once you have found your home and have a contract in place:

Inspections – You should have a termite & WDO inspection done.

                       Home inspection.

                       4 point inspection (can reduce home insurance cost)

                                   HVAC (Heating, Ventilation and Air Conditioning)

                                   Electrical wiring and panels

                                   Plumbing connections and fixtures

                                   Roof

Even though these inspections are not required by law, we at Trascojac Properties highly recommend them because they will play an important role in determining whether or not you want to go ahead and purchase the property and or renegotiate the price depending on what was found.

Radon Gas – We check if radon gas is a problem in the area of the home you like and considering putting in an offer. Radon gas is a naturally occurring gas underground that if present must be measured, because high levels are potential hazards to your health. Certain levels are safe.

Open Permits – Open permits are a future problem when you have to apply for one in the future. There could be open permits on the property that the home inspector will uncover and or the title company. The previous owner will be contacted to contact the contractor who left the permit open. Open permits ae usually open because when the contractor completed the work he or the owner didn’t schedule an inspection by the city to complete inspection, pass and close it. Another reason may be that the property is now in foreclosure, so we at Trascojac Properties will work hard to fix that problem for you.

Survey – Be sure to order a survey to be absolutely sure of the land and the property that will be yours. This is a requirement of the lender. Not required for cash buyers, however we highly recommend cash buyers get a survey too.

Appraisal – Be sure to have an appraisal done to make sure you are not paying more for the home than it’s worth. Appraisals are required and ordered by the lender. If you are a cash buyer, you should still order an appraisal. If the lender won’t lend more than the home is worth then why should you pay more than it’s worth?

Homeowner’s Insurance – Be sure to have the correct type of insurance and discounts on your home.

Discounts include but is not limited to:

                             Distance to fire hydrant

                             Distance to fire station

                             Crime statistics

                             Age of roof

                             Age of HVAC

                             Age of plumbing

                             Electrical wiring and panels

Title Insurance – Title insurance is very important. Title insurance ensures that title to the property is being conveyed to you free and clear of liens and encumbrances. Should any liens and encumbrances pop up after closing you are covered.

Closing Costs – There are sellers closing costs and buyers closing costs. Closing costs include but is not limited to the fees charged by the title company, title insurance, lenders fees. When you locate a home that you like we can let you know on a closing cost sheet what you will bring to closing.

Becoming a Proud Home Owner – CONGRATULATIONS you are now a proud home owner.

First Time Home Buyer Assistance Programs

Are you a Florida resident and looking around for your first home and am wondering how the first time home buyer program works? There are some situations where you don’t even need to be a first time buyer. There are a few programs that will consider you if you have owned a home in the past three years.

There are three broad categories of assistance for first time home buyers:

(1). Home loan programs, financial help to allow you to take out a mortgage.

(2). Buyer education programs and workshops that teach you the basics basics of home ownership where you will receive a certificate to show that you have completed the class as part of the program.

(3). Help for you to understand understand all the aid packages available.

These federal and state program housing programs provide assistance to qualifying home buyers by offering low interest, 30 year, fixed rate mortgages together with down payment and closing cost assistance.

First time home buyer programs apply to more people than you may think. It includes those who have never owned a home, people never owned a home on their own and wish to be the sole owner of a property, and others who lost their home to foreclosure three or more years ago.

Florida First Government Loan Program – Military Heroes Program

Military Heroes Program, which helps honorably discharged veterans and active military benefit from a lower interest rate on their first mortgage.

Florida HFA Preferred Conventional Loan Program

For those who qualify for a conventional 30 year fixed rate mortgage, the HFA Preferred loan program is aimed for you to benefit from lower mortgage insurance costs if you put down less than 20 percent. This program doesn’t help with down payment assistance or closing costs, it uses a Fannie Mae loan product that is aimed toward state housing finance agencies because it focuses on low cost mortgage insurance and 3% to 4% of the homes purchase price. For those who qualify, this program can be transformed into the HFA Preferred 3% PLUS Conventional Loan Program.

Florida Assist Program

This down payment assistance program functions as a second mortgage, giving you a 0% deferred payment loan of $7,500. However, you have to repay the $7,500 back when you sell the property or no longer use it as your primary residence, such as using it for rental income.

Homebuyer Loan Program

This 2nd mortgage program provides as much as $10,000 to eligible home buyers. With a 3% fixed rate, the total loan amount is paid monthly over 15 years.

Education Courses & Workshops

Many of the down payment assistance programs require proof that you completed the first time home buyer class or workshop. This proof comes in the form of of a certificate that covers budgeting, money management, how to find and apply for a mortgage, shopping for a home and the steps leading up to closing.

The housing counseling agencies are also available to anyone looking for guidance on their home, whether it’s about making a purchase, trouble making payments or how to protect the investment.

To find out more and see if you qualify, please feel free to reach out to me at any time.

Information is not guaranteed over time due to Information changes without notice from the sources in this information. Please note the date of this information.

Home Ownership Program For The Homeless in Florida

The U.S. Department of Housing and Urban Development (HUD) awarded approximately $2 billion to renew support to thousands of local homeless assistance programs across the nation.

In Florida, 249 individual agencies serving the homeless will receive an average of $336,000 each as part of the $78,683,000 coming to the state. HUD’s Continuum of Care grants provide support to 5,800 local programs nationwide. The current round is renewal funding for previously funded local programs. HUD says it will announce new project awards at a later date.

“At this time of year, thousands of local homeless assistance providers receive federal funding to operate and maintain stable housing for those living in our shelter system and on our streets,” says HUD Secretary Ben Carson. “Renewing these grants will come as a huge relief to these providers, and it will allow them to continue their work to house and serve our most vulnerable neighbors.”

HUD Continuum of Care grant funding supports a broad array of interventions designed to assist individuals and families experiencing homelessness, particularly those living in places not meant for habitation, in sheltering programs or at imminent risk of becoming homeless.

Homelessness in the U.S.

Last December, local communities reported homelessness in the U.S. remained largely unchanged in 2018. Based on these local reports, HUD’s 2018 Annual Homeless Assessment Report to Congress found that 552,830 persons experienced homelessness on a single night in 2018, an increase of 0.3 percent since 2017.

The number of families with children experiencing homelessness declined 2.7 percent since 2017 and 29 percent since 2010. Local communities also reported a continuing trend in reducing veteran homelessness across the country – the number of veterans experiencing homelessness fell 5.4 percent since January 2017 and by 49 percent since 2010.

Florida metro homelessness grants

  • Tampa/Hillsborough County: $5,554,399 going to 10 agencies
  • St. Petersburg, Clearwater, Largo/Pinellas County: $4,002,824 going to 16 agencies
  • Lakeland, Winter Haven/Polk County: $1,599,336 going to 12 agencies
  • Deltona, Daytona Beach/Volusia, Flagler counties: $1,248,709 going to 12 agencies
  • Fort Walton Beach/Okaloosa, Walton counties : $621,070 going to 2 agencies
  • Tallahassee/Leon County: $1,338,151 going to 4 agencies
  • Orlando/Orange, Osceola, Seminole counties: $7,813,215 going to 14 agencies
  • Gainesville/Alachua, Putnam counties: $670,363 going to 7 agencies
  • Fort Pierce/St. Lucie, Indian River, Martin counties: $1,661,189 going to 16 agencies
  • Jacksonville-Duval, Clay counties: $5,012,167 going to 14 agencies
  • Pensacola/Escambia, Santa Rosa counties: $664,822 going to 4 agencies
  • St. Johns County: $121,214 going to 3 agencies
  • Palm Bay, Melbourne/Brevard County: $668,886 going to 5 agencies
  • Ocala/Marion County: $244,761 going to 5 agencies
  • Panama City/Bay, Jackson counties: $30,765 going to 1 agency
  • Hendry, Hardee, Highlands counties: $160,123 going to 2 agencies
  • Columbia, Hamilton, Lafayette, Suwannee counties: $321,607 going to 4 agencies
  • Pasco County: $850,289 going to 7 counties
  • Citrus, Hernando, Lake, Sumter counties: $323,344 going to 4 agencies
  • Miami-Dade County: $28,725,282 going to 58 agencies
  • Fort Lauderdale/Broward County: $9,916,663 going to 20 agencies
  • Punta Gorda/Charlotte County: $200,568 going to 3 agencies
  • Monroe County: $477,526 going to 6 agencies
  • West Palm Beach/Palm Beach County: $5,630,604 going to 14 agencies
  • Naples/Collier County: $119,616 gong to 2 agencies

For more information and help in finding out if you qualify to become a proud homeowner, contact me and I will help you.

Information in it’s original form from Florida Realtors regular important news and updates I receive on a regular basis.

Information is not guaranteed over time due to Information changes without notice from the sources in this information. Please note the date of this information.


Can I Buy After a Short Sale?

Yes, but there is a waiting period for each type of mortgage loan, except one loan type which I will get into later in this blog.

You also need to build your credit score back up by paying all bills on time and keep inquiries off your report. Inquiries from anywhere that you have applied for any kind of financing or leasing.

  • FHA loans are a wait period of three years when putting a down payment of 3.5%
  • Conventional loans wait period is four years when putting down a minimum payment of 5%
  • Conventional Loans wait period is two years with a minimum down payment of 10% and prove extenuating circumstances beyond your control.
  • USDA loans wait period has different wait periods that depend on the short sale circumstances at that time.

You can find out more detailed information about USDA Mortgage Loans by clicking on this link.

https://www.usdaloanpro.com/blog/2016/04/01/can-you-qualify-for-a-usda-loan-after-a-short-sale-2/

  • Fannie Mae HomeReady loans are four years when putting down 3%
  • VA loans are a wait period of two years and the down payment will still be 0%
  • Non-QM loans (Non-Qualified Mortgage) are the very next day. This is any mortgage loan that doesn’t comply with the Consumer Financial Protection Bureau’s existing rules on Qualified Mortgages (QM). Usually this type of mortgage loan helps buyers who are not able to prove they are capable of making the mortgage payments. You generally have to have a high credit score.

You can find out more detailed information about Non-QM Mortgage Loans by clicking on this link.

https://angeloakms.com/breaking-non-qm-correspondent-lending/

Information is not guaranteed over time due to Information changes without notice from the sources in this information. Please note the date of this information.

Can I Buy After a Foreclosure?

Yes, you can buy after a foreclosure, BUT with every mortgage loan types there is a wait time period that begins after closing, and the time period depends on the type of financing you had on the house.

You also have to have repaired credit to meet the credit requirements of the mortgage loan you are applying for.

Cash would be any time.

FHA (Federal Housing Administration) of three years is the minimum amount of time you have to wait. However, if you can prove the foreclosure was from a one time uncontrollable situation, FHA lenders MAY reduce the wait period to two years.

  • You have to put 3.5% down payment with a credit score of 580.
  • You have to put 10% down payment with a credit score of 500.

The lender may also require you to go through HUD Counseling.

Conventional loans backed by Freddie Mac or Fannie Mae is a seven years. This is the longest wait time period.

  • You have to put 5% minimum down payment. Percentage could be as high as 20%. There are variables that include credit score, conventional backing, points and so on that the lender will dictate.

Fannie Mae loans are seven years wait period, but you may get approved in three years as long as you can prove to the lender that your foreclosure was due to a one time uncontrollable situation. (Extenuating Circumstances).

  • You have to put 20% down payment with a credit score of 620.

Freddie Mac loans are seven years wait period, but you may get approved in three years as long as you can prove to the lender that your foreclosure was due to a one time uncontrollable situation. (Extenuating Circumstances).

  • You have to put 20% down payment with a credit score of 620.

VA (Veterans Affairs) loans are two years wait period.

  • You put $0.00 down payment with a credit score of 620.

Some Tips For You To Work On Before Being Approved For a Mortgage After Foreclosure

Paying all credit card debt

Paying your credit card debts down or completely off is one of the major ways to raise your credit score and prove to the lenders you are now financially able to pay your bills. Once you’ve paid off your credit cards you should see the change in your credit score within a month.

It is wise not to cancel your cards though, because these credit cards show the lender that you have an established trusting relationship with other peoples money. Cancelling your credit cards cancels that out.

Don’t apply for any other financing

Don’t increase your debt burden before applying for mortgage financing. This includes buying or leasing a car, buy now pay later furniture and appliances, rent to own furniture and appliances. Your debt-to-income ratio is one of the most important factors lenders look for when determining your eligibility for a mortgage.

Avoid any other negatives on your credit report.

After your foreclosure, paying all your bills and loan payments on time is crucial. You don’t want to begin the waiting for negative remarks to be removed again.

Collection accounts may remain for 7 years and 6 months from the date you first fell behind with the original creditor leading up to when the account was placed in collection.

Information is not guaranteed over time due to Information changes without notice from the sources in this information. Please note the date of this information.

New Eco-Star Home? Can I afford it?

If you have a minimum credit score of 580 then absolutely yes.

As you know, it’s a sellers market and house prices have increased significantly. For what most property prices are being sold for you can buy brand new for as low as $161,000 (not including the lot). They will build on your lot, or you can chose one of theirs.

Certified eco-star energy efficient homes are not only cheaper than other properties to live in, they are high performance spacious, well laid and thought out floor plans and have many upgrades and appliances included that many builders charge extra for.

 SAVE MONEY NOW

SAVE EVEN MORE MONEY LATER

USE 1/2 THE ELECTRICITY OF TYPICAL HOMES IN AN ECO-STAR HIGH-PERFORMANCE HOME WITH BUILDING ENVELOPE ENGINEERED FOR 160 MPH WINDLOAD

    • Energy efficient heat pump water heating system
    • R-38 ceiling insulation
    • R-7 wall insulation with double furring strips
    • 16 SEER air-conditioning unit
    • Digital programmable thermostat
    • Solar powered attic ventilation fan
    • Radiant heat barrier between ceiling and roof
    • Kitchen and bath fans ventilated to outside
    • Air conditioner unit located in conditioned space
    • Pressure tight tested air ducting
    • LowE double pane windows
    • Deluxe energy star rated appliances
    • 100% energy efficient CFL lighting
    • 4 to 5 ceiling fan outlets as per plan
    • Sealed adhesive roof underlayment
  • Exceeds FPL BuildSmart specifications

FEATURES VARY BY LOCATION

Eco-Star High Efficiency Homes will save you half off your electricity bill.

According to the US Department of Energy, the HERS rating is 130 for the average used home and 100 for a new home.

The HERS rating for a typical High-Performance home is less than 60. This number is verified by an independent certified Energy Rate and it is less than half of the average used home (55% less).

Resale values of a High Efficiency home is greater than regular resale homes.

Saving money month after month along 

with Comfortable living!

I can help (depending on your credit score and financing options) get you into a brand new certified eco-star home, where your electricity bills are a fraction of what you pay now.

You will be impressed beyond belief.

Application:
When you are ready to apply for a loan, it will be easier for you and the lender to have these things ready.

Loan Checklist:

    • Address to your place of residence (past two years)
    • Social Security numbers
    • Names and location of your employers (past two years)
    • Gross monthly salary at your current job(s)
    • Pertinent information for all checking and savings accounts
    • Pertinent information for all open loans
    • Complete information for other real estate you own
    • Approximate value of all personal property
    • Certificate of Eligibility and DD-214 (for veterans only)
  • Current check stubs and your W-2 forms (past two years)
  • Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals
DISCLAIMER: We do not endorse any website that you click on, on our website. We want you to be fully informed of the process so that you can make an informed decision on what is right for you.

Information is not guaranteed over time due to Information changes without notice from the sources in this information. Please note the date of this information.

USDA Mortgage Loan (Residential)

Is a USDA (United States Department of Agriculture) Mortgage Loan right for me?

Very few people don’t know about the USDA Mortgage loan. Most go for FHA or conventional.

  • Conventional 5% to 20% down.
  • FHA 3.5% down.
  • VA 0% down.
  • USDA 0% down.

The USDA Loan is available to anyone that meets income and credit requirements.

USDA, or the United States Department of Agriculture, designed this loan to pull the population out of large metropolitan cites and into surrounding areas. USDA eligible properties are typically located outside of city limits, in suburbs or rural areas. The USDA Guaranteed Loan is not meant to finance farms rather they are geared towards the standard single-family home.

This zero-down, 100% financing home loan has income limits, and property eligibility requirements, however you don’t have to be a first time home buyer to take advantage of this great home mortgage option.

Another USDA Loan advantage is that the USDA Loan’s mortgage insurance fee is just 0.35% monthly – nearly half of what is charged on a conventional loan and a quarter of what is charged on FHA. There are no loan amount limits like FHA, instead the applicant’s income determines the maximum loan size. USDA Loans also allow for the buyer to roll their closing costs into the mortgage up to 100% of the appraised value of the home.

Copied and pasted from USDAloans.com website

  • Less than perfect credit score (No Problem)
  • Chapter 7 bankruptcy (No Problem after 3 years)
  • Chapter 13 bankruptcy (No Problem after 1 year)

To see if you qualify, and for more information, click on this link now.

https://www.usdaloans.com/

Application:
When you are ready to apply for a loan, it will be easier for you and the lender to have these things ready.

Loan Checklist:

    • Address to your place of residence (past two years)
    • Social Security numbers
    • Names and location of your employers (past two years)
    • Gross monthly salary at your current job(s)
    • Pertinent information for all checking and savings accounts
    • Pertinent information for all open loans
    • Complete information for other real estate you own
    • Approximate value of all personal property
    • Certificate of Eligibility and DD-214 (for veterans only)
  • Current check stubs and your W-2 forms (past two years)
  • Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals
DISCLAIMER: We do not endorse any website that you click on, on our website. We want you to be fully informed of the process so that you can make an informed decision on what is right for you.

Information is not guaranteed over time due to Information changes without notice from the sources in this information. Please note the date of this information.

FHA 203(k) Rehab Mortgage

FHA 203(k) is a unique type of mortgage that enables home buyers to finance the purchase of a house and the cost of its rehabilitation through a single mortgage.

When buying a house that needs repair or modernizing (fixer upper), home buyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. However, the FHA 203(k) offers a solution that helps borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. FHA 203(k) insured loans save borrowers time and money. They also protect the lender by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.

The FHA 203(k) insures mortgages covering the purchase and rehabilitation of a home that is at least a year old. The cost of the rehabilitation must be at least $5,000, but the total value of the property must still fall within the FHA mortgage limit for the area. The value of the property is determined by either (i) the value of the property before rehabilitation plus the cost of rehabilitation, or (ii) 110 percent of the appraised value of the property after rehabilitation, whichever is less.

Lenders may charge some additional fees, such as a supplemental origination fee, fees to cover the preparation of architectural documents and review of the rehabilitation plan, and a higher appraisal fee than the regular FHA mortgage loan.

Properties Eligible for Mortgage Loan
The extent of the rehabilitation covered by FHA 203(k) insurance may range from the exceeding $5,000 in cost to virtual reconstruction. A home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. FHA 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non residential uses, they can also cover the conversion of a property of any size to a 1 to 4 unit property. The types of improvements that borrowers may make using FHA 203(k) financing include:

  • structural alterations and reconstruction
  • making energy conservation improvements
  • adding or replacing floors and/or floor treatments
  • enhancing accessibility for a disabled person
  • major landscape work and site improvements
  • modernization and improvements to the home’s function
  • elimination of health and safety hazards
  • changes that improve appearance and eliminate obsolescence
  • adding or replacing roofing, gutters, and downspouts
  • reconditioning or replacing plumbing; installing a well and/or septic system

HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards.

Limited FHA 203(k) Mortgage

FHA’s Limited (formerly known as streamline) 203(k) program allows home buyers to finance up to $35,000 into their mortgage to repair, improve, or upgrade the property. Home buyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser. Home buyers can make their new home move in ready by remodeling the kitchen, painting the interior or purchasing new carpet.

Application:
When you are ready to apply for a loan, it will be easier for you and the lender to have these things ready.

Loan Checklist:

    • Address to your place of residence (past two years)
    • Social Security numbers
    • Names and location of your employers (past two years)
    • Gross monthly salary at your current job(s)
    • Pertinent information for all checking and savings accounts
    • Pertinent information for all open loans
    • Complete information for other real estate you own
    • Approximate value of all personal property
    • Certificate of Eligibility and DD-214 (for veterans only)
  • Current check stubs and your W-2 forms (past two years)
  • Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals
DISCLAIMER: We do not endorse any website that you click on, on our website. We want you to be fully informed of the process so that you can make an informed decision on what is right for you.

Information is not guaranteed over time due to Information changes without notice from the sources in this information. Please note the date of this information.

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FHA Mortgage Loan: Is this for me?

The FHA (Federal Housing Administration) was created in 1934, and insures loans provided by FHA approved lenders. FHA insures loans on single family and multi-family homes in the United States. FHA insured loans require private mortgage insurance (PMI) to protect lenders against losses that result from defaults on home mortgages.

Can I qualify for a Mortgage with my Credit Score?

April 7, 2017 – Everyone wants to know if their FICO score is high enough to qualify for an FHA mortgage. Is it possible to qualify for an FHA loan with credit scores from 500 to 579?  YES. FICO scores between 500 and 579 may technically qualify for an FHA loan at the higher down payment requirement because those borrowers are considered high risk. But most lenders will require FICO scores in the mid-600s. The “500-579 rule” is only an FHA minimum.

When looking into an FHA Loan it is important to understand that FHA minimum standards and participating lender requirements are not the same. Participating FHA lenders may have higher standards than FHA loan minimums, and this is permitted as long as those standards are applied in accordance with the law.

Depending on your FICO scores, you may be eligible for more competitive interest rates and and lower down payments than applicants who come to the FHA loan process with “marginal” credit scores. You may be able to adapt credit related “best practices” to help make you a more attractive FHA loan applicant, but it takes time to work on your credit habits and establish patterns of reliability.

Lender standards will determine what interest rates are available for a certain range of credit scores, and which applicants may be required to make higher down payments because of those “marginal” scores.

Under the rules found in HUD 4000.1, the FHA single family home loan rule book for both new purchase and refinance loans, borrowers with credit scores at 580 or higher are technically eligible for maximum financing for FHA home loans. These borrowers will be required to make a minimum cash investment of a 3.5% down payment. For those with credit scores between 500 and 579 10% down is required according to HUD 4000.1.

Some loan applicants mistakenly believe that if it’s written down in the FHA loan rule book, the rule must be enforced. Lender standards, state law, or other factors may have a say in how the transaction is to be carried out in addition to these minimums.

When you are ready to apply for a loan, it will be easier for you and the lender to have these things ready.

Loan Checklist:

    • Address to your place of residence (past two years)
    • Social Security numbers
    • Names and location of your employers (past two years)
    • Gross monthly salary at your current job(s)
    • Pertinent information for all checking and savings accounts
    • Pertinent information for all open loans
    • Complete information for other real estate you own
    • Approximate value of all personal property
    • Certificate of Eligibility and DD-214 (for veterans only)
  • Current check stubs and your W-2 forms (past two years)
  • Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals

You will need to pay for a credit report and an appraisal of the property you have an executed contract on.

DISCLAIMER: We do not endorse any website that you click on, on our website. We want you to be fully informed of the process so that you can make an informed decision on what is right for you.

Information is not guaranteed over time due to Information changes without notice from the sources in this information. Please note the date of this information.

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