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FHA Home Loans Frequently Asked Questions

by LESLIE MATHEWS 11/08/2018

If you’ve been considering taking the next step toward homeownership, you’ve likely heard about FHA loans. Offered by the Federal Housing Administration (hence, “FHA”), these loans are great for a number of people hoping to purchase a home but who don’t have a large down payment saved.

There are many misconceptions about FHA loans since they’re often advertised by large, private mortgage lenders but are technically a government program. In order to clear up some of the confusion, we’ve provided answers to some frequently asked questions regarding FHA loans.

Read on to learn about FHA loans and how they might help you purchase a home.

Who issues an FHA loan?

FHA loans aren’t issued by the government. Rather, they’re issued by private lenders but insured, or “guaranteed,” by the government.

Since lenders want to make sure they’ll see a positive return from lending to you, they typically want you to have a high credit score and a large down payment (typically 20%). However, not everyone is able to meet those requirements. In this situation, the FHA is able to help you acquire a loan by giving your lender a guarantee.

Are there different types of FHA loans?

Yes. In fact, there are nine distinct types of loans guaranteed by the FHA. These include fixed rate mortgages, adjustable rate mortgages, refinance loans, reverse mortgages, VA loans, and more.

What do you need to qualify for an FHA loan?

It’s a common misconception that you need to be a first-time buyer to qualify for an FHA loan. However, if you have previously owned a home that was foreclosed on or if you’ve filed for bankruptcy, the foreclosure and bankruptcy have to be at least three years old.

You’ll also need to demonstrate a stable employment history, usually including two years of employment with the same employer.

Finally, the FHA will ask you for your current and previous addresses, the last two years tax returns, and the W-2 forms from any of your recent jobs.

What is the most I can borrow with an FHA loan?

The FHA sets mortgage limits on loans depending on the state and county you’ll be living in. For a single-family home, the limit ranges from $275,000 to $451,000. So be sure to check the limits for your state and county.

Can you refinance an FHA loan?

Refinancing a loan is a great way to receive a lower interest rate or to shorten the term of their mortgage to save in the total number of interest payments. In fact, the FHA typically only allows refinancing when it will result in lower interest payments on a loan.

What is the minimum credit score needed to qualify for an FHA loan?

While you don’t need excellent credit to qualify for a loan, the FHA will require you to have a score of at least a 580. You can check your score for free online from a number of companies, such as Mint or Credit Karma. Be aware, however, that scores vary between credit bureaus. So, it’s a good idea to check your FICO score once per year, which is the score used by mortgage lenders.

About the Author

Author
LESLIE MATHEWS
About Leslie:
Leslie Mathews is a dedicated, full time, experienced real estate professional.

He takes pride in focusing on providing his clients with personal attention while ensuring that his team understands client needs, strives to meet daily commitments, exceed customer expectations and educating the community on all they need to know about the real estate market.

Leslie is consistently offering on-time communication, accurate evaluations, and advanced maretting, as well as a strong network or buyers, contractors, and other related service professionals to handle all aspects of the REO management and disposition. His training methods consist of face-to-face meeting with groups of people or individuals or direct contact through media communications.

His focus is to minimize lender expenses, holding time and obtain the maximum net returns.
Leslie is experienced in speaking to large groups; much of this experience comes from his involvement in local schools and churches, where he often volunteers. This connects with how he wants to conduct Buyers Seminars by working with the community of the church to connect with people.

Buyers who purchase homes with us will get a coupon for $250 that goes toward closing costs, and half off their next home warranty, or they can use $450 towards anything else they need. Offers cannot be combined.

For our Sellers, we provide a team of experts, including inspectors, contractors, property preservation, staging, movers, and detailed cleaning crews. 
Also, to help our seller clients market their home, we advertise to over 350 web search engines. These include Zillow, Trulia, AOL search, Realtor.com. CBS Atlanta, Bank of America.com, Chase.com, WellsFargo,com, Redfin, Listingbook, Hotpads, Loopnet, Realtytrac, Homes.com, Real Estate Book, Living Choices, Bobvilla, Right move, Hoouse Values, Google, MSN, Yahoo, Market Leader, Hudseeker.com SimpleForclosures.com, ShortSaleSeeker.com, Homefinder, Ziprealty.com, HotBot, Galaxy, Resnet, Georgia House Values, Bing, LinkedIn, Facbook, Twitter, Excite.com. and many more.
His company's website takes advantage of the power of customer automated emails to reach interested buyers quickly and efficiently.

- Real Estate Broker. prior leadership positions professionally and personally. My most recent titles are Realtor Broker, Sales and consultant. 
  • My experience covers all areas of business, including Management, Sales, Marketing, Accounting and Ownership.
  • I understand the business model for distressed properties and know that BPO, REO, and Short Sales represent a strong niche for the coming years.
  • I have the ability to coordinate the financial resources to maintain and manage bank-owned assets; including monthly utilities, maintenance, re-key, and repairs.
  • I have the experience, training and educational background to fully appreciate the key factors of success in preparing BPOs and marketing REO assets.
  • Excellent communication skills and problem solver. I am not afraid to get my hands dirty.
  • Technically skilled in Internet Marketing that enables the sale of inventory for the highest price in the shortest amount of time.
  • Any emergency handled urgently-the same day of occurrence.
  • I will communicate to you any resolution for the property's needs vs reporting to you the problem. You will hear the issue and probable resolution.
  • My Goal: To have the lowest days on market with the highest ration of BPO Price vs Sales Price, and to provide First Class customer service to all my clients.