Home Loans for First-Time Buyers: The FHA Option
The FHA home loan is ideal for first-time buyers who don’t have a lot of money saved up. There are other benefits to this strategy, as well. And that’s what I’d like to focus on in today’s lesson. According to the Mortgage Bankers Association (MBA), first-time home buyers account for more than 75 percent of FHA home purchases. The program is not limited to first-timers....
Read MoreMortgage Pre-Approval and Why It’s a Good Idea
Mortgage pre-approval is one of the smartest things you can do as a home buyer. It helps you in many ways, and we will discuss all of them in today’s lesson. Definition: Pre-approval is when the mortgage lender evaluates your financial situation. They use this process to determine whether or not you’re qualified for a home loan. They also do it to determine how much money...
Read MoreUpside Down on Mortgage – How to Reduce Mortgage Debt
Reader Question: “I have a mortgage on an ARM loan owing about $126,000, and a home equity on an ARM for about $32,000. I had my home just appraised in the last week and found out that it came back at $87,000. Are there any programs out there for people as myself with an upside down mortgage and if so what can I do to reduce this debt. I figure I am about $50,000 over on my home as of...
Read MoreWhat are the eligibility requirements for FHA home loans?
Question: “I want to use an FHA loan to buy a house, because I don’t have much money saved for the down payment. I was told I can put 3% down through this program. What are the eligibility requirements for FHA home loans in 2010?” We need to clear up some misinformation first. Then we can talk about the eligibility requirements for this mortgage program. The current down-payment...
Read MoreWhat’s the difference between FHA loans and conventional mortgage loans?
Question: “I’ve been hearing a lot about FHA home loans lately, and how popular they are with home buyers right now. What is the main difference between FHA and conventional loans? Are they just easier to get?” You’re right. They are rising in popularity right now, and you’ll soon learn why. There are actually several differences between FHA and conventional...
Read MoreHow much mortgage can I afford to borrow?
Question: “I’m planning to buy a house early next year, and I’m trying to put together a budget. I want to know much mortgage I can afford to borrow, based on my income. My current income is $85,000 per year.” First of all, I’d like to give you some kudos for being a smart home buyer. You’ve started the research and planning process well in advance of your...
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