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FHA Loans Information – What is a FHA Home Loan?

If you consider yourself a prospective home buyer, there is a lot of information you need to be aware of. As for new home buyers who are applying for an FHA loan, making your self updated with the proceeding rules and regulations of the FHA would make it easier for you to meet their qualifications.

You can start off in checking your qualification list by updating all of your paperwork which means preparing your most recent paperwork. You need to present addresses where you have lived in past 2 years. The same goes with your employment and income information. You also need to track those open loans you have, your bank accounts, information regarding any other real estate you own, your most recent W2 and tax returns. In addition for those veterans, your certificate of eligibility and DD Form 214 which is otherwise known as your discharge papers should be included in your paperwork list.

In order for you to qualify for an FHA home loan, you should have at least two years steady employment, ideally in the same field. Income should be steady or increasing. Mortgage payments should be 30% or less of your income. The total finance payments including new home, auto payments, credit cards and other monthly accounts should not be exceeding 41%. As much as possible, you may have one federally insured loan open at a time.

In addition to this FHA mortgage information, if you have had bankruptcy, it must be at least two years old with good credit established after the bankruptcy. The same goes with foreclosures, it must be at least three years prior.

As for FHA home loans information on benefits, FHA loans include low down payment, basically runs 3% and sometimes lesser. The interest rate is often lower than other types of loans. It not essential to have a perfect credit rating to qualify for an FHA loan, which is basically the reason why first time home buyers chose the FHA loans.

It is advisable for you to seek FHA approved lender in order for you to gather more FHA loans information. At the same, you get to ask more questions that seem vague to you. More FHA loans information are provided by these approved lender. Keep in mind that there are differences and loan limits in FHA loans, which is why you need to probe for more FHA mortgage information, particularly on location as the loan limits differ per region.

Credit Information Report for Home Loans

The credit information report, CIR as it is termed is the history of the client’s spending habits over the past months. This is considered as one of the most important documents during the processing and approval of home loans. Maintaining a good credit history would help facilitate the process of application and approval of home loan.

What does CIR mean? It is an account of your salary amount, take away per month. This indicates your total salary as well as for application of loan even the other earning spouse’s salary is also considered. The total expenditure incurred during the previous months and the remaining part of the amount as savings. Also whether the client has repaid on time or defaulted counts during the approval of the loan. Hence if the borrower has to apply for a loan one has to be thorough with financial matters. All bills and taxes must be paid on time. The credit card amount has to be paid on every monthly basis. Expenses have to be curtailed leaving a substantial amount remaining as savings. Many different types of loans like vehicle loan, personal loan and so on indicate that you have compulsory repayment schedules and this may affect negatively your chances of loan approval. If many applications for loans have been applied then this would also indicate that the amount of repayment may become a big one every month and this may be considered as a negative point from the side of the lender.

Having the credit card and not spending much is the best as this shows that you are financially secure and all your expenses are handled without the use of credit card. Also one must remember that there is always a high amount of interest rate applied to this amount used as credit.

Texas USDA Rural Development Home Loan Information

The Texas USDA Rural Development home loan program was designed to provide affordable housing for residents in rural areas. In many cases this is the best mortgage for buyers in rural areas. Here are some of the USDA RD program features:

  • 100% Financing – No down payment is required
  • No cash reserves are required – Many other programs require that you have a certain amount of cash in reserve at closing
  • Seller concessions are allowed up to 6% – This means that the seller can pay some or all of your closing costs
  • There is no minimum FICO credit score – Clients with no credit history may qualify. (Those with a credit history should have reasonably good credit)
  • There is no limit to the purchase price – It must be reasonable for your income
  • NOT just for first time buyers
  • Very low interest rate
  • No PMI insurance – This helps keep your mortgage payment low

Recently the mortgage industry has tightened rules so that even borrowers with stellar credit need a good down payment. The USDA program and the VA program are the two main programs that allow 100% financing.

Here are some of the key requirements to qualify for the Texas USDA mortgage program:

  • You must be a US citizen or a legal permanent resident
  • The property must be in a qualified rural area
  • The property must be for residential use – not a farm of for commercial use
  • You need to have enough income for the home you want – generally the payment should not be more than 29% of your gross monthly income
  • You must have no credit or a reasonably good credit history
  • Your family income should not be more than 115% of the US median income
  • The applicant should not already own a suitable home in the commuting are of the proposed property
  • Other conditions may apply but you will probably qualify if you meet the above requirements