FHA-Loan-Expert

FHA Loan Expert

Since FHA loans are returning to the forefront of the mortgage industry, many homebuyers have questions regarding their options in obtaining an FHA mortgage and the benefits of using FHA as opposed to using a conventional lending product. FHA lending used to require more paperwork for us than it does now. There really aren’t any disadvantages left in using our FHA loans. It is important for potential homebuyers or refinance borrowers to educate themselves thoroughly in modern-day FHA lending. This site is full of information about our FHA loans.

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Do you have a GENERAL* question for our experts? Use the short contact form below to ask a brief question. We’ll post a response usually the next business day, so check back!

* Please note that the FHA expert cannot give advice on an individual particular situation. The information required to make such an analysis is extremely detailed and time consuming, and should not be handled in this forum. This forum is for discussion regarding general FHA questions. It should be used in addition to other FHA resources. For an individual analysis, please call 1-888-328-3738. The thoughts posted by our expert are his current opinion at the time of posting only, and are subject to change without notice. This site has no legal responsibility for the accuracy or completeness of opinions. Questions containing personal information will not be posted on this website.

Previous Questions and Answers

How long does one have to keep the FHA loan before selling or refinancing?

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If I have just started a new job and get paid in cash, what information can I give my loan officer as income verification?

The best thing is some sort of income verification letter from your employer. You will want the letter to include how much you make, how often you are paid, and how long you have been working at that job earning that amount of money.

Is a FHA appraiser responsible for inspecting the utilities in a home?

Yes, it is the FHA appraiser's responsibility.

Can you get a FHA loan for a second home or investment property?

No. You must live in the home financed by the FHA loan.

What if you have an interest only loan and have no equity in your home? Will you still be able to refinance?

Check out this source for interest only refinancing.

I applied for a FHA loan and the mortgage told me I qualified after paying for several charges like appraisal, title inspection, termite inspection, earnest money and other expenses. Now they are telling me that I can't have the loan after all. Is there anything I can do?

This is a similar situation. It all comes down to what is in the contract you agreed to when you paid the fees. If it is in writing that you could get the money back if you don't get the loan, then this is an option for you.

I was pre-qualified for my loan. 30 days before closing, I was not able to provide proof of employment due to relocating. I am now unapproved for my loan. Can I get my earnest money back?

It all comes down to what is in the contracts that allows the buyers to back out and when. Most contracts say that if the buyer doesn't get the loan, they can get their deposit back. If you feel that you are due a buyer's earnest money, or a portion of it according to your contract, then you can take them to arbitration or court.

Can you do a partial claim if you do not live in the home anymore but are currently renting it out to someone for the mortgage payment amount?

You will not be able to do a FHA partial claim because you must live in the home financed by an FHA mortgage.

I heard about a program to help prevent foreclosure, where you can get a loan to bring your FHA mortgage current as long as you can make the monthly payments from that point on. Do you have information about this?

This is a new program from the HUD. This aims to help the many families who are in trouble of losing their homes. Please visit the press release for more information.

Do renters living in a foreclosing home still have to pay rent?

Yes. You have to pay rent as long as you live there for as long as the lease you signed states.

Does FHA still participate in the Ameridream program?

Yes, there are many down payment programs like Ameridream that you may use when applying for an FHA loan.

Do you provide construction loans?

The FHA has a construction loan program. Check here for more specifics on the program.

If you have received a FHA number listing for both you and your spouse, but your spouse refuses to sign at closing, what can you do?

The easiest thing and best long term thing to do will be to just get a new FHA listing number for yourself only, particularly if you are not using your spouse's credit to qualify.

If I live in a mobile home am I still eligible for the first time home buyers loan?

If you are currently living in a mobile home and are going to purchase a standard home, yes you can still be eligible.

I found a home I want to purchase. It is an as is with no contingencies, no mortgage, no repairs prior to closing, no home inspection/termite contingency. The bank requires that the commitment letter read the same. Is there an FHA loan that can meet the NO contingencies requirement?

Typically, the HUD will always require a contingency. On properties older than 30 years and over, $7,500 in rehabilitation costs, the cost estimate must include a contingency reserve. The reserve must be a minimum of ten percent of the cost of rehabilitation; however, the contingency reserve may not exceed twenty percent where major remodeling is contemplated.

Can one get a HELOC home equity line of credit through the FHA?

The HUD offers a variety of home improvement programs. Check this resource for information on each of them.

With the new proposals by the Bush Administration, what will the new requirements be to qualify?

The legislation is still in the works, so that is unclear. The main thing they are trying to change is to remove the 3% down payment requirement.

What does your credit score have to be to get a home?

There is no set minimum credit score to qualify for any loan. Many factors, especially debt to income ratio, are considered when you apply for a loan.

How soon can I refinance a FHA 203k loan?

There is no set time limit. However, there must be a certain amount of available equity between the as is value of the home and the estimated improvement value of the home.

I am looking into a new program that has the FHA work with my bank to pay off my loans and pay FHA directly for a year. Have you heard of this type of program?

Check this out for information about different FHA programs.

If the mortgage company accepts a sale offer for less than the amount owed on the FHA mortgage, am I responsible for paying off the rest? Also, will this show up on my credit as a foreclosure?

Generally, if a mortgage company accepts a sale, they already would have foreclosed at that point, so yes it will show up on your credit. If they sell for less than what is owed, that will usually show on credit as judgement to that bank for the difference. If the bank sells for less, whatever was less the ex-homeowner will owe back to the HUD before entitlement is restored.

Do you have to be married to get a FHA loan?

No. You have several options. Just one of you can get the loan, or one of you can co-sign with the other one, or you can wait until you are married. The important thing to consider is if you can qualify for the loan yourself, and know that the credit of everyone who is on the loan will be taken into consideration.

I found a home in Arizona. There is only one door into the home. My husband thinks that FHA requires two doors into a home to pass inspection. Is this true?

This is not currently a FHA requirement.

What are the penalties for defaulting on a FHA loan?

Anytime you default on any home loan your lender may start the foreclosure process.

Please give me information on the home equity program for buying new mobile homes.

Check this out for more information about home equity for mobile homes.

What is the kiddie condo offer for housing for college students?

This is a new program offered by the HUD. Please check here for more information on the kiddie condo program.

I am concerned with requirements of a FHA loan during the inspections process. What can you tell me about the standards for FHA in regards to property condition prior to the sale?

The first step will be to get the home appraised by a FHA appraiser. Check here to be sure on the FHA appraising guidelines.

Can you get a FHA loan if you have a judgment?

The short answer is you have to pay off the judgment to get a FHA loan. Really, you should pay it off before considering home ownership anyway. That said, there are special circumstances in which the underwriter may allow the loan to go through, but don't bank on it.

I understand that mobile homes must meet specific requirements to qualify for FHA loans. Is this the case for modular homes?

Here is a great modular home resource that has more information.

If the purchase price of a home is $135,000, what would be required of me to obtain a no down payment package?

For FHA loans, a 3% down payment will be required. However, if you try a conventional home loan, it is possible to get approved without a down payment.

Can the closing cost be written into the loan?

Yes. Most closing costs can be written into the loan. Check here for more information on closing costs.

Someone told me that if my FHA loan is foreclosed, that the mortgage company will pursue me to still pay off the loan. Is that true?

Not really. You will still owe fees if your home is foreclosed on. However, you won't have to pay off the full value of the loan.

I have a FHA loan and would like to know the options that I have that could help me lower my payments.

Your best option is to try a FHA refinance. Start here to see if you pre-qualify.

Can a homeowner living out of state cosign for a loan?

Yes.

I have investment property in Florida and I would like to refinance with a fixed FHA 30-year loan. Is this possible?

No. FHA loans can not be used for investment properties.

My wife and I bought a condo in June 2006. We were told by the agent upon closing that we would still be eligible for a FHA loan if we moved from the condo to a single family home. Is this the case?

Yes.

I was wrongfully foreclosed, but all of my other credit and bills are in good standing. Will I be able to obtain a FHA loan?

Yes, but you will have to be able to prove that the home was wrongfully foreclosed.

Can a home purchased with a FHA loan be refinanced or will there be penalties assessed?

You can always refinance a loan if you qualify. There will be no penalties assessed, other than the normal costs of the loan refinancing.

I currently have a high interest loan. How do I go about transferring over to a FHA loan?

You will want to pre-qualify for a FHA refinance.

Are there FHA construction loans? If so, what type of credit score is needed? Can owned land be used as an asset or down payment for approval?

Yes. Find out more about FHA construction loans.

My husband is a Vietnam vet and we are buying our first home. We have excellent credit. Can an FHA loan help us or is it for people with poor or no credit history?

The FHA does help people with poor or no credit history, but it is not solely for them. The best option is to pre-qualify for a FHA loan, as well as other loans, and see what will work best for you.

Are there some FHA lenders that can refuse to use programs that help buyers with closing costs?

This seems very unusual and highly skeptical. It may be a good idea for you to research other lenders.

What must the income of the buyer be to qualify for a FHA loan?

The income is not really important. What matters is the debt to income ratio of the buyer.

I want to buy a condo because it is becoming too difficult to pay rent. I was wondering if and how I can qualify for a FHA loan.

You can pre-qualify online to get connected with a lender.

How long does it take for a case number to be assigned to a FHA loan?

A case number is usually assigned within a few days after the appraisal is ordered.

Do I have to escrow real estate taxes and homeowners insurance with a FHA loan?

Yes, and it usually does benefit you. Read more about the benefits of escrow accounts.

I want to refinance by myself because my husband's credit report is very poor. Would I be able to use his income and not put him in the loan?

No. You can only use income of people named on the loan.

I have a FHA mortgage. I recently took out a home equity loan with a different bank. Can I do a FHA refinance on just the FHA loan?

It sounds like you are interested in a FHA refinance. This is for people who want to lower their payment or interest rate. However, depending on how recently you took out the home equity loan, it may be difficult to do. If you have the equity, you should be able to combine the original loan and the home equity loan.

If you are able to get a FHA loan, will you still have to pay a PMI if you have a 10% down payment?

Yes, even with a 10% down payment, you will still have to pay a PMI.

I have a home loan with an arm. Can I refinance with a FHA fixed interest rate?

Without knowing the specifics of you situation, yes you can refinance to a FHA loan.

My sister and I purchased a house 4 years ago with a FHA loan. Now we need to take me off the mortgage and put my mother on instead. We know the loan is assumable, but we don't know the criteria. We are also wondering if I can just transfer the liability over to my mother. Is this possible?

Loans settled after December 1, 1989 are fully assumable if the buyer qualifies and has a satisfactory credit check. The seller is not held liable for any loan default. So, as long as your mother qualifies, the loan can simply be transferred to her.

I have a FHA house now and want to buy another home. Can I sell this one and buy another through FHA?

Yes, you can sell your current FHA financed home and buy another through FHA.

I would like to purchase a home, but I have poor credit and have only been at my present job for 8 months so I will need a cosigner. Is there any way of getting around this?

Probably not. With the recent crackdown on subprime mortgages, lenders will not approve poor credit/low income home buyers without a cosigner.

I own my home, which is paid for in full. I would like to try to purchase another home for investment purposes. Will I be able to get pre-approved on a home around $128,000 even though I already own a home?

You can qualify for a conventional home loan, but FHA loans may not be used for investment properties.

How soon can I sell my FHA financed home?

You can sell at any time. However, if you sell very quickly you may actually take a loss on the home, which may hurt your ability to get a FHA loan in the future.

How many times does a mortgage company pull your credit before closing?

Usually just once to get pre-qualified. The lender may also pull your credit, but in most cases they will also only pull your credit one time.

Can I refinance a property that is zoned agricultural with a FHA loan?

Yes, but a FHA loan can only be used for the house and the first 10 acres. You will have to get an agricultural loan if the property exceeds 10 acres.

I have real estate investment property that needs some upgrades and is renter occupied. Can a FHA loan help me?

No. In order to receive a FHA loan for a property, it must be your primary residence; it cannot be an investment property. However, a conventional refinance may be an option.

What foundation requirements must be met to refinance a mobile home?

There are several requirements for FHA loans on mobile homes. One of the key requirements is that the mobile home must be permanently attached to the foundation. Check this out for more information about FHA mobile home financing.

How do I get approved to be a FHA mortgage broker?

Check this out if you are a mortgage broker and want information about becoming a FHA lender.

What are the responsibilities of a cosigner on a FHA loan?

In short, the cosigner is responsible for the loan repayment if the borrower defaults on the payments. The cosigner's responsibilities for a FHA loan are the same as with any other loan. Check this out for more about a cosigner's responsibilities.

Do I have to use my husband's credit on a FHA loan if I am able to qualify without it?

No, you do not have to use your husband's credit if you can qualify without it.

We are trying to refinance our home loan with me as the primary. My husband will be on the title, but I've been told that due to his recent foreclosure I may not be able to get a FHA loan because they consider his debt to be my debt as well since we are married. Is this so? If so, then why?

If your husband is on the title and you are both on the loan, then all debt and income for both of you will be taken into account. If you do not want his debt to count, you will have to remove him from the loan.

Should I pay off an old collection debt before applying for a FHA loan?

Yes, you should eliminate as much debt as possible before applying for any loan. This improve your credit and increase your chances of qualifying for a loan.

If a client has a student loan that is in deferment, do I have to count that into their overall debt to income ratio when going FHA? Or is there a particular time limit the loan has to be in deferment in order for me to not have to count that liability against them?

If the student loan is in deferment, it does not count as debt.

I am pre-approved for a conventional loan that is 100% financing. I only have to put up earnest money, which I will get back at closing. My friends keep telling me that I should get a FHA loan. Because of my job, my interest rate is fixed at 6.15. Which loan is better, conventional or FHA?

Check this out for information about conventional vs. FHA loans

I have a FHA loan that will hit 5 years in October. I want to know, since at the 5 year mark I can drop the PMI, how do I go about doing that?

Check out this for information about eliminating PMI

What happens if you're in the process of building a home and your construction loan lender files bankruptcy? Are you forced to refinance or will our paper be purchased by another lender?

You will have to contact your mortgage broker or bank to find out if the loan will be purchased by another lender.

After a chapter 13 has been discharged, how long will it be until I can get a loan to buy a home?

Generally speaking, you may qualify for a home loan 2 years after discharge from bankruptcy.

I have read that the FHA offers borrowers debt-consolidation programs. Where can I find information on this?

Check out this for more on Debt Consolidation.

Is it legal to foreclose on someone if they are 31 days late? -Thomas

Anytime you default on the agreements of your loan, it is possible for the lender to start foreclosure proceedings.

I am interested in refinancing my current FHA mortgage. Do I have to go through all the steps again, as I am both buyer and seller? In particular, I am concerned about the appraisal and if I will have to upgrade my home to fit into FHA guidelines? -Cathy

You will not have to go thru the steps again. The FHA offers a FHA streamline refinance. They are very hassle free because appraisals and income verification are usually not required.

I have been pre-approved for a conventional loan. Some of my friends keep telling me a FHA loan is better. Can you tell what the difference is and which is better?

Without knowing more it is hard to say which loan will be best for your situation. Check out this resource for the difference between FHA and conventional home loans.

What are the pros and cons of private mortgage insurance?

Check out this mortgage insurance resource for more information on private mortgage insurance.

Can I roll my pre-pay penalties from my ARM mortgage over to a FHA refinance fixed rate if approved? Also can my closing cost be rolled in as well and can I also get cash from my refinance if have only lived in the home for a year?

Sometimes it is possible to rollover pre-pay penalties into an FHA loan refinance, and some of your closing costs may be rolled in as well. How much cash you can get out is determined by the loan to value. You can take cash up to 95% of the value of your home with FHA. So you may refinance up to 95% of your home's value. This would include, the current balance, penalties, closing costs and the cash you want.

About 3 yrs ago, I sold my home that had an FHA loan. During the past year I have twice received something in the mail saying I have a government refund from the sale of that house and the only thing I can think of would be money back from FHA. Can you tell me if I have a refund due to me? -Jeffrey

First, be wary of mailers saying things like that. Often then can be scams. Please use our HUD refund search to see if you are owed a refund. If so, you should be able to contact the HUD directly by calling or writing them. Then you will not have to pay the fee on any of the money.

It is possible that I can have my taxes excluded from my mortgage from the FHA loan and pay the taxes on my own? -Shell

No. All FHA loans require the establishing of an escrow impound account to allow your taxes to be included in your monthly payment.

If turned down on your first attempt at receiving an FHA loan because of income, what other sources of income or steps should I take when reapplying? -Travis

This probably means your dept to income ratio is too high. Simply put, you have too much debt and not enough income. Before you reapply, you should work on either paying down some of your debt, or consider taking another job to increase your income.

I am a first time buyer looking to buy a home. I have fair credit and can only put down about 3%. What options are out there for me to own a home?

Without knowing more about your credit it is hard to say for sure. But the 3% down payment if exactly what the FHA requires. It seems like you should consider the idea of buying your house with a FHA loan.

How do I get lower rate on my home? -Jamie

If you qualify, it is possible to get a FHA refinance to get a lower rate on your home loan.

I have no green card or evidence of temporary status, but have SSN and a job. Can I get a FHA loan?

If you are not a natural born US citizen, the only legal way to get a SSN is if you also have a green card.

How long of a process is it from start to signing of loan? -Charlie

Honestly, the process time can vary. This depends on many factors, such as the realtor, mortgage broker, bank and any complications that come up. Most often it takes 14-30 days.

How long past a discharged bankruptcy is best in order to obtain a loan?

The longer you wait the less effect the bankruptcy will have on your interest rate. Usually, you have to wait at least two years. You must be three years removed from bankruptcy to get a FHA loan.

If own a home that is not FHA financed, can we buy a second home under the FHA program. We are not planning on selling the first home, but renting it out instead.

As long as you live in the home you are going to buy with you FHA loan, then yes, this is possible.

I applied for a FHA loan and the documents were submitted to underwriting who requested more documentation from me. The loan was suppose to close but was moved due to needing more info. Are the underwriters aware of the closing date when reviewing the loans?

The underwriters are aware of the closing date. They probably needed more information for a variety of reasons, and it is fairly common to have the closing pushed back. Once the underwriters approve your loan, you will be ready to close.

My father's home is in foreclosure, he has already refinanced the home and filed bankruptcy. What can he do to save his home?

Unfortunately, it sounds like if the foreclosure process as already started, and he is in bankruptcy, there isn't much that can be done.

The loan officer that I am working with told me that I cannot incorporate the closing costs into the mortgage loan. Is this true?

Usually, you cannot incorporate all the closing costs into the loan, but some you can. There are fees that must be paid at closing.

After you sign the papers closing, how long does it take to get your keys to move into your new home? -Meme

After the closing, you should have your keys right away, unless there has been some specific issues worked out between you and the seller.

Is there any type of loan that FHA has that is a no income verification or stated income verification? Do you always have to verify your income whether you are self employed or W2 employee? -Mike

Unfortunately not. To qualify for any FHA loan to purchase a home, you are going to have to verify your income. If you are self employed, you have to have been self employed for at least 2 years, and be able to document your income.

If I already have a home loan and wish to sell this home and make another purchase, will I be able to obtain a FHA loan?

Yes. You may only have one FHA loan at a time, but if you are selling your current home to buy a new one, you are still eligible for an FHA loan.

Regardless of the down payment, what percentage does the borrower have to provide? -Darlene

Currently, the borrower must provide a 3% down payment. However, there are several down payment assistance programs that can help with this. Also, current FHA legislation is working to remove the down payment requirement.

Will a first time buyer get money to buy furniture and pay off bills?

Generally speaking, no. When you qualify for a FHA loan, it is for the purchase of the home and some of the closing costs. There is no extra money available for use. In addition, if you have late bills that need to be paid off, it will be difficult to qualify for a FHA loan anyway.

What are the home requirements?

Please check out this FHA resource for information on specific home requirements for an FHA loan.

I was offered a job out of state and I am having a tough time selling my home. May I rent the home at a loss until I sell it?

Assuming you are referring to an FHA loan, no. You must live in the property for which the FHA loan was provided.

I am currently a graduate student looking to purchase a home. I plan to rent out two bedrooms to renters. I have saved for a down payment and would like to know the feasibility of securing a loan without a co-signer?

This is specific information that we cannot give a simple yes or no to. You will have to work with a lender to completely figure it out. However, since you have the 3% down payment requirement, as long as you can show decent income and credit history, it is possible you will qualify without a co-signer.

The home that I am interested in buying is still under construction. Can I qualify for an FHA loan to buy the house before it is finished being built? -Bernie

You may qualify for an FHA 203k loan. Not a lot of lenders will do them, but it is a program available for people who are building a new home with a FHA loan.

If the house I want to buy is being sold on the HUD foreclosure list do I have no qualify for an FHA loan? -Angel

No. You can purchase the home thru any loan program you choose.

If I cosign a private student loan for my son, will that affect my ability to refinance my home in the near future?

Probably not. Simply being a co-signer on a student loan won't affect you being able to refinance your home. In addition, student loans are in deferment for quite a while. While the loan is in deferment, you don?t have to be making payments on it.

What are the negatives of getting a FHA loan when one is not a US citizen or permanent resident yet?

Only US citizens and resident aliens are eligible for FHA insured loans.

What if I do not have all my cancelled check for my 12 month rental history but have bank deposit slip from depositing rental payment in my landlord's account?

This is something you will have to work out with your mortgage broker and lender. It is likely they will accept something else other than cancelled checks showing your on time rent payments.

Does the FHA give loans on vacant land?

It is possible to get an FHA loan on vacant land, but you must prove that you are planning to build a home on the land and live in that home. It cannot be an investment property

With a FHA loan, can a person qualify for the down payment assistance program, particularly a first time home buyer?

Definitely. Many FHA down payment assistance programs are designed to help the first time home buyer.

How much can I expect to pay for closing costs? Does FHA require prepayment of yearly reoccurring costs like property taxes?

No, you will not have to prepay yearly reoccurring costs. You will have to pay the first year along with your closing costs. Learn more about FHA closing costs.

How long must student loans be in deferment in order to get approval for a FHA refinance? -Keikei

There is no set requirement on how long until you have to start paying on your student loans. However, they may be taken into account when calculating your income to debt ratios to see if you will qualify for a FHA loan.

I had a FHA loan and then sold my house. Can I get approved again? If I can, how long do I have to wait to qualify for an FHA loan? -Edmund

As long as you still meet the FHA qualification requirements, you should be able to qualify for another FHA loan right away. You many only have on FHA loan at a time, but since you sold your home this shouldn't be a problem.

Are FHA loans assumable? How long after purchasing with an assumable FHA loan can we get another person to assume the loan? Also, does the person trying to assume the mortgage still have to qualify under fha guidelines, specifically how does that work when another person is assuming your mortgage? -Krystal

Yes, you can assume a FHA loan, or if you are the seller, someone may assume your FHA loan. There is no specific time limit on when someone may assume your FHA loan, but they will have to qualify. No down payment requirements will apply however. The application process is much simpler, because it basically only consists of credit and income checks. Also, no property appraisal will be required.

Can I still qualify for an FHA loan if I have a recent foreclosure? If so, how long will I have to wait to apply? -Sean & Melissa

You can apply for a new loan 3 years after your bankruptcy or foreclosure. However, your debts must be discharged, and you must be able to show 3 years of good credit.

I am currently planning on buying a 4 plex to owner occupy. Do I need to have my current home sold in order for the underwriter to believe my intent to owner occupy my FHA financed 4plex? -Patrick

It is a requirement to live in a least one of the units of the 4 plex, but you don't necessarily have to sell your home. You could have two homes, but only the 4 plex with a FHA mortgage.

What about the proposed FHA changes we hear so much about? What is the status of that?

Keep up to date with new FHA legislation at our FHA modernization page.

What happens if I default on my FHA loan? -Ana

Anytime you default on a home loan, you will face foreclosure. This means the lender that lent you the money will have the right to seize your home. The only difference with an FHA loan, is that the lender is already guaranteed at least part of the loan by the government. Therefore, the lender won't lose money on the home if you default and they are forced to foreclose. Because of this, the lender is able to offer the borrower lower interest rates than they otherwise could.

We purchased our home in March of 2000 with the FHA Nehemiah program assistance. Can we rent out that home? Are there any restrictions on renting out our home?

No. One of the main requirements of an FHA loan is that you live in the home that the loan was used for.

In order to obtain an FHA refinance, will I need to have proof that the title on my manufactured home has been surrendered? -Sheila

In most cases, yes. Though you should speak with your broker for individual information that my pertain to your specific case.

How many years before one can purchase after bankruptcy?

Generally speaking, bankruptcies have to be at least 2 years removed before you will be qualified for a home loan. There are specific programs that may get you a loan sooner, though they typically come with very high interest rates.

I need to refinance my loan. I don't have enough income verification but have good credit scores. What loan is available for me?

In most cases, you will be able to refinance your home loan without income verification. Specifically, most home equity loans require no income verification.

I was approved for only $110,000 to purchase a home. Can I take out another loan on top of this one?

While it is possible to take out more than one loan, it may not be wise. Probably the reason you were only able to qualify for that amount is because that is all the lender feels you can afford with your current financial situation. It may be advisable to find a home within that budget, and look at upgrading in the future.

Who normally pays closing cost in new house financing? -Trace

While there are no set requirements, buyers typically pay the following closing costs: Inspection Fees, Homeowners Insurance, Part of Transfer Taxes, Title Insurance, Escrow Fees, and Attorney's fees Sellers closing costs typically include: Loan Payoff Fees, Real Estate Commission, Title Insurance, Termite Repairs, Cash Payments in Lieu of Repairs to the Property, Part of Transfer Taxes, Attorney's Fees, and other fees set by local custom or negotiated during the transaction

What makes an FHA payoff different from a conventional one? -Angela

There is no real difference in how you pay off either type of loan. The difference is really only that FHA loans are insured to the lender by the government in case the borrower should default. This protects the lender and allows them to offer lower rates than if the loan were not insured.

What types of homes can be built with a FHA loan? -Aly

You can use the FHA program to purchase single family homes and condominiums. You can also use an FHA loan to purchase up to four unit buildings, as long as you live in one of them.

Can you pay off a Chapter 13 Bankruptcy with a FHA loan? -Bryan

This depends how long you have been in bankruptcy. If you have been in a Chapter 13 for over one year and have made all payments on time, you may be able to qualify for FHA financing. Another option is refinance and pay off your bankruptcy with a home equity loan.

Are there any restrictions on using more than one down payment assistant programs? Can we use 4-5 different kinds of assistant programs? -Nahid

Yes. Combining down payment assistance programs is sometimes called 'layered financing.' Keep in mind not all programs can be combined, but your lender can help you decide the programs that will be most advantageous for your situation.

Can a judgment from 8 years ago prevent me from getting a mortgage approval?

This depends on the specifics of the case, but most likely not. While it shouldn't prevent you from getting approved for a home mortgage, it could have an effect on the rate you will receive on your loan.

I have a FHA loan, but the house needs serious repairs. Can I use a VA refinance to make repairs? ? Shawn

If you are eligible, yes, you can use a VA refinance to make home improvements. If you are not eligible for a VA loan, you can also use a FHA refinance to make home improvements or repairs.

Can you get a FHA loan or refinance on an investment property?

Not usually. One of the requirements of a FHA loan is that you live in the property that has the FHA loan.

I'm trying to buy a mobile home where I own the land. What are the FHA requirements for the house foundation?

Please use this home resource provided by the HUD for more information on foundation requirements for FHA financed homes.

When can I apply for another FHA loan? I have had this loan for 7 years. -Dale

In most cases you cannot have more than on FHA loan, except for these few exceptions. You may choose to refinance your FHA loan, and you can do this anytime, provided you have made enough payments to have a LTV of 90% or lower.

What is a 210 Warranty and how to I obtain one?

A 210 Warranty is a warranty that provides protection for the seller and the buyer during the sale of pre-owned homes. It provides a type of insurance, primarily for large appliances. Both the seller and buyer are covered for the electrical and heating systems, plumbing and water heaters. Additionally, the buyer is covered against damage to the air conditioning, alarms and other appliances. Find more information on the specific coverage here. Most insurance companies will be able to provide you with this type of warranty.

Does the Good Neighbor Next Door apply to conventional loans or is this for FHA loans only.

The Good Neighbor Next Door applies to VA Loans, FHA Loans, conventional loans, or cash.

I was about to buy a condo, I was approved for a VA home loan. Now 2 weeks before closing the lender is saying the HOA/condo is not approved. I cannot find anything to back this up and they have no answers for me.

There could be some specific reason why this condo is no longer approved. It may be a question of your finances, or it could be the condo itself. There is no way for us to know the reason for this change in approval without the information.

With an FHA growing equity loan, will a borrower be able to cancel mortgage insurance much sooner than on other types of fha mortgages?

You have within 3 business days from signing any FHA Loan to cancel the loan. Typically, borrowers cancel their mortgage insurance when the equity of their home has reached 20% of the original price of the house. You may have the ability for a growing equity loan to reach that amount faster than another FHA loan, but depending on the plan you make with your lender, it may not be any faster than a regular FHA Loan.

I am getting ready to close on an FHA purchase and my husband is not on the loan. Can I add him to the title at closing? -Lisa

Some state require that the non-purchasing spouse be on the title also in order to make it valid. However, each state is different in how they conduct adding a spouse to the title. Your loan officer most likely knows that right process for your particular state. I would talk to your loan officer again and have him/her walk you through the process.

Is it better to be married to get a loan? -Holly

Your marital status makes no impact on whether you are approved for a loan. The only time that it would matter is if your husband is your co-signer, in which case, he would have to include all of his information with yours. Individually, it does not matter.

If the status of a condo is 'FHA approval withdrawn due to pending litigation,' is there any way to get it back to an approved status? -Joi

Your best bet at this point is to meet with your lender and discuss selling your condo. This will save you money as well as your lender. Depending on your financial status, your lender can best advise you on what to do.

What is the yearly income that you need to make in order to get approved for a house? -Silvia Argueta

There is no set yearly income that you have to make in order to get approved for a loan to buy a house. The factors surrounding whether you will be approved for a loan are all encompassing of whether you are in debt, your credit history, where you live, what house you want to buy, and several other circumstances. By visiting an FHA Calculator, you can determine what you have to make by including your other financial history into the loan equation.

How do you get approved for a home if you still owe on another home that you need to see? -Kate

You need to explore the option of a 'combination loan' if you are looking at paying for another mortgage. This loan can help you primarily when you are looking at making the down payment on your second home. There are two different types of combination loans. The 80/10/10 is a loan in which you get a house for 80% of the purchase price, you put down 10% of your own funds, and borrow the remaining 10% of the funds for a second mortgage. The second combination loan is referred to as the "piggy back loan," in which some buyers use to avoid a private mortgage insurance or a PMI. This is due to the fact that PMIs are not income tax deductible.

Why do a lot of banks not loan on properties over 10 acres? -Kevin Peterson

An FHA loan can be loaned to someone whose property is over ten acres, however the loan will only include the price of the house and the first ten acres of the property. This is a result of the property falling under the category of an Agricultural Loan. It is more beneficial to the borrower to apply for an Agricultural Loan if the property is has a large number of acres.

Do I have to get a good credit to get a FHA loan?

While obtaining an FHA Loan with bad credit is easier than obtaining a conventional loan with bad credit, there are still several guidelines that must be met. You must provide your credit history when applying for an FHA Loan. There must be two lines of credit, such as rent history and utilities, that the underwriter can look at to determine if you qualify for a loan. Look at more credit information to see all requirements you must fulfill.

Is Mortgage Loan Place a part of FHA or a separate entity? What is the relationship between the two? -J. Andrea

Mortgage Loan Place puts people in touch with qualified lenders, and has NO relationship with the FHA.

We have a single wide mobile home with a fluctuating interest rate. We still owe as much as we started with 10 years ago and we just don't know what to do. Do you have any suggestions on how we can get out of this mortgage and get a home loan?

The best step for you to take at this point is to refinance your home and try to get a lower interest rate. You can apply for a home loan if you have paid all of your mortgages on time, if you have a steady income, and you are not in debt. You need to talk to a local lender to see if your finances would qualify you for an FHA Loan.

Can a multi-family property with 2 structures qualify for an FHA loan?

Yes, a multi-family property with 2 structures can qualify for an FHA Loan. The maximum loan for improving a multi-family property is $12,000 per family unit, and the loan cannot exceed $60,000.

Is an FHA Loan fixed or is it an ARM?

An FHA Loan mortgage can be fixed or adjustable. There are actually several different types of FHA Loan Mortgages available, it is just a matter of discovering which one is best for you.

We are being offered an FHA loan where the interest starts at 4% and increases to 5, 6 then 7 at year 4. What are the negatives to this loan?

The negative aspects of this loan include the fact that you need to prepare for an income increase over the years in order to keep your payments up on time. You need to speak with a local lender in order to ensure that your income over the next few years will cover your payments.

Can you co-sign a loan if you are already a homeowner?

Yes, you can co-sign on a loan if you are already a homeowner. You will need to send in as much financial documentation as the person you are co-signing for. The lender needs to know that the co-signer has his/her finances in order as well as the primary borrower.

I have been trying to refinance my conventional loan to a FHA Loan. I have never been late on a mortgage payment, but I have collections and charge offs I wanted to pay with the cash out money. Do I have to pay off collections before or can I use the funds from closing to pay collections?

Yes, you can use the money from your closing costs to pay off your collections and charge offs. However, while you are reducing your individual debt to income ratio, this method of paying off debt is not recommended. It is recommended that you pay off your collections before you receive money from the cash out refinancing process. Also, you should really consult with a private mortgage lender to see what your best options are.

I was wondering how much money over the value of a home could be borrowed and rolled into the mortgage. I found a cheap house that would need a lot of work, and would need a good deal more than just the house cost. -Jeremy

The maximum FHA Loan is dependent upon several factors. For example, your location, your credit history, and your debt to income ratio can all influence how much money you are eligible for from a FHA Loan. If you visit an FHA Calculator, you can find out how much money you are quailfied to receive.

Can you refinance a conventional loan with a fha loan?

Yes, you can refinance a conventioan loan with a FHA Loan! There are three types of ways to refinance an FHA Loan, such as: streamline refinancing, cash out refinancing, and converting a conventional loan to a FHA Loan.

I am refinancing an existing 2/28 arm and am told I would be perfect for an fha loan. Does the FHA mandate that I escrow both taxes and insurance? Also, must I pay my HOA dues in my monthly mortgage payment? -Liz

Yes, the FHA mandates that you escrow both your taxes and your insurance so that the annual premiums for your taxes and insurance are paid along with your monthly payments. The Homeowners Association (HOA) dues are calculated as part of your monthly mortgage payment for qualification purposes. However, your lender does not usually escrow them, and they are, therefore, your responsibility to take care of as a separate payment from your monthly mortgage payment.

What if you have 12 months cancelled checks of on time rental history. I have a lease that was terminated last year. My rental history was broken but I paid all rent on time.

You may want to consult the lender you are considering for your FHA Loan. It should be alright because your checks were on time, but each lender may be different.

How do I convert my 5/1 arm?

After the first five years of paying the ARM interest rate, in which none of the payemnts go towards a retiring principal. After this time, then it becomes an adjustable-rate mortgage with both principal and interest payments.

I have been in at my current commissioned job for a little over a year. I was at my previous job over 2 years, and it was also commissioned but it was in a different industry. Will I be able to use my current commission income to qualify?

When applying for a FHA Loan, you need to provide documentation of your past two years of employment, and you need to give the average commission income that you received over that period of time. You must also provide documentation of your tax returns over the last two years along with a recent paystub. Commissions earned less than one year will not be considered.

Can you qualify for a larger mortgage with an FHA graduated payment mortgage than with a regular 30 year fixed rate FHA loan? -Diane

No, graduated payment mortgages do not enable you to purchase a home with a larger mortgage. The purpose of a graduated payment mortgage is to help people who cannot afford a high amount of interest on their mortgage in the beginning of paying for their home. The graduated mortgage payment substantially increases in interest over time, so borrowers need to prepare to pay more.

What is the maximum FHA Loan limit in Charles County, Maryland?

The maximum FHA Loan limit varies according to location. You need to use a loan expert. to determine what the maximum FHA Loan limit is in your area.

What if I filed bankruptcy a little over a year ago, re-established credit and my fiance has excellent credit? Can we get approval together, even though it hasn't been 2 years since my discharge?

Usually, they do not make any exceptions to the 2 year rule following a discharge from bankruptcy. The best course of action is to have your fiance apply for a loan on his own, as he has not filed for bankruptcy.

What happens when the loan is paid off? What are the responsibilities of the parties involved and how long should it all take?

Following your completion of paying off your FHA Loan, your mortgage company must notify the HUD of the termination of the FHA mortgage insurance for your loan. Within 45 days, you should receive a check or an application called an HUD-27050-B to ensure that the HUD received proof of the termination of the FHA insurance. If you do not receive either in the mail, you need further contact information. on closing your FHA Loan.

I took out an FHA loan in November 06 for my first home. Now, I am looking to sell my house and move back in with my parents. Besides paying back closing costs, what else do I need to be aware of? -Kisa

When closing your FHA Loan, it is advised that you do not rush this process and forget any payments that still need to be paid. It is best to contact your lender and make sure that you don't owe any other fees besides what must be paid for closing costs. It is important thoroughly check what payments you have made and what you still need to make.

Can you have two FHA loans at the same time?

It is possible to have two FHA loans at the same time, however, it is not usually approved. The underwriter is less likely to give you another loan when you are already paying one off. The main concern of a lender is that you will be able to pay what you owe, when you owe it, and if you are trying to pay for two loan simultaneously, the lenders will have doubt as to your ability to pay them the money that is owed. Also, location may have an impact on whether or not the lenders in your area are more lenient when it comes to giving a second loan. It is best to consult with a local lender.

Are FHA loans available to low income tenants? Where do I go to find information on this type of loan? -Rosi

The HUD was created to help lower income families and tenants afford housing. You send in the same application that everyone does when applying for an FHA Loan, however the underwriter sees that the income circumstances are different. It is not always the amount of money that you make that is important, rather, it is whether that income is a steady source of financial support. If you show that you do not have any outstanding debts to pay and that you are able to pay your mortgage based on your income, you should be approved for a loan.

All variables being equal, will an FHA loan have a smaller interest rate than a conventional loan?

Conventional loans are much more difficult to obtain than an FHA loan, and interest rates are about the same. The requirements for acquiring a conventional loan are much more stringent if you have filed for bankruptcy, and they do not allow for alternative uses of credit like FHA Loans do. FHA Loans also have an adjustable interest rate that is looked at annually. To determine what your interest rate will be if you are approved for an FHA Loan, you should use a FHA Calculator.

My dad has a FHA Loan. Can he co-sign for my FHA Loan?

Yes, he can co-sign for your FHA Loan. However, he will have to provide the same amount of documentation that you will when applying for the loan. The underwriter may be less likely to approve the loan seeing that he is already paying on another loan. The reason for this is because, when agreeing to be your co-signer, your father is agreeing to take over the payments on your loan if you are unable to for some reason. If his financial documents are in order, however, you have good chance of being approved.

What is the difference between FHA Loans and VA Loans? -Charlotte

FHA Loans and VA Loans are very similar. However, only veterans may obtain a VA Loan, whereas FHA Loans are available to all applicants who meet the financial requirements. VA Loans are commonly less expensive than regular loans. Find out more about FHA Loans vs. VA Loans and determine which loan is best for you.

Once the underwriting approval comes the laon is funded, correct? How long does that take? -Evangeline

Yes, that is correct. Your loan is funded after the underwriter approves you for a loan. The approval process from the underwriter can take anywhere from 2-5 days. After your documented information is given to the investor, the funding process can take another 2-4 days.

If I have a previous outstanding judgment, can I ask for the judgment amount be added into the loan to have it cleared?

No, you cannot ask for your judgment amount to be added to the loan. The judgment amount that you have to pay off may prevent you from getting approved for your loan all together. FHA underwriters look to see that you do not have a lot of money to pay off. It is better to take care of debt before applying for a loan.

was discharged from bankrupcy Sept. 13 2006. When can I apply for a mortgage loan again?

You can apply for another loan two years following your discharge from bankruptcy. Provided that you do not have any outstanding debts, that you have good credit, and that you have proof of a steady source of income, you should be successful in obtaining another loan.

1 was discharged from bankrupcy Sept. 13 2006. When can I apply for a mortgage loan again?

If I currently have an FHA mortgage can I apply for one on another home that I want to buy since my original home is listed for sale?

The underwriter may be hesitant to approve you for a second FHA loan while you are still paying on your existing house. There is no guarantee that your house will sell quickly, and you may be faced with paying two mortgages for longer than you had expected. It is suggested to not apply for a second FHA Loan until you know your house has been or will be sold. The underwriter simply looks at the financial strain that paying a mortgage on two houses will cause.

When purchasing a condo on an fha loan, is the up front mortgage insurance or the monthly mortgage insurance waived because it is a condo? I was told one of the two are not applicable to condos. Please help. -Kevin

Once your condo is FHA approved, then you worry about the mortgage insurance. When buying a condo, there is no up front mortgage insurance.

When getting approved, does the approval need to be through both FHA underwiter and the lenders underwriter?

The lenders are required to have an FHA underwriter. Whether you go through and underwriter from the FHA or from the lender, they are all FHA certified. HUD requires that the lender must hire an underwriter who is FHA-registered with the FHA Underwriter Registry. It does not matter whether you go through the FHA underwriter or the lender's underwriter, because in order to review and certify mortgage documents, they all must meet the requirements of the FHA Mortgage Insurance Program.

What is the difference between the lenders underwriter and the FHA underwriter? -Kevin

The lending companies can actually employ underwriters who have been trained by the FHA Underwriter Registry. The FHA underwriters are simply employed by the FHA. The job that either underwriter does is exactly the same, and they are trained in the same techniques.

I just had a few questions about FHA loans. Do lenders require PMI with FHA loans? What benefit do FHA loans provide in comparison to other companies?

Yes, lenders do require a private mortgage insurance (PMI) to ensure that the total amount of the mortgage will be paid to the lender if the buyer defaults. Usually the PMI will not be put into effect until 20% of the mortgage has been paid. Find out more about the benefits of FHA loans compared to the benefits provided by other companies.

We currently have a Mobile home and land finance through FHA, We found a brick home and the sellers would like to sell it ASAP. We will be going through FHA again. Do we have to sell our current home in order to get the new one or can we sell our mobile home after we move in the brick home.

No, you do not necessarily have to sell your home to apply for another FHA Loan. However, the underwriter may be more reluctant to give you a loan for the home you are trying to buy if you still have another property you are taking care of. It would be to your benefit to try and sell your mobile home before applying for another loan. Even if you do not sell your mobile home right away, at least the underwriter will see, if it is documented in the information that you send in, that you are trying to sell your current home.

We received an FHA Loan with the house we have now, but we want to move. We have lived in the house for 3 years. Is there a certain amount of time we have to live in the house before we can sell it?

What you are talking about is called a prepayment lock-out. A prepayment lock-out depends on the negotiations you were given from your lender regarding your loan. The FHA lock-out is most commonly used for apartments rather than homes, but not always. It is best to consult your lender before you think of selling your home.

What is the income level necessary to get an FHA Loan?

In order to receive an FHA Loan, there is not a specific income requirement. You must be able to provide the information that shows you have enough income to cover the mortgage and any other obligation you must cover for the borrower. The underwriter, who either approves or rejects your request for a loan, is looking to see if you have a steady source of income that will last for an extended period of time.

I am a graduate student and my parents have agreed to cosign with me. I will be taking out student loans for living expenses so that I can make payments without their help, but to qualify for an FHA loan must I, in addition to my cosigner, also meet certain requirements such as income? If so, are my student loans a valid source of income?

When you apply for an FHA Loan, your information must show the underwriter that you have a stable source of income. As you are a student, you must state that fact and show evidence of your student loans. You and your co-signer must have a good credit score and you must illustrate that you will be able to make your mortgage payments on time.

How much would I expect to pay in mortgage insurance on per month on a $170,000 loan?

There are several factors that contribute to how much you will have to pay on mortgage insurance for a $170,000 loan. Since these factors include such information as your own yearly income and other private information, you should go to FHA Calculator on our website, and this should help you find your estimated monthly payments.

Can a person use an ITIN number instead of a social security number for a FHA loan?

Yes, please read more about how to pre-qualify for a FHA loan without a Social Security Number.

Can you explain exactly what the FHA Underwriter does? I'm confused on that process. -Robert

After your file has been submitted to the investor, the underwriter will review your information and come to a decision about your loan. This process can take between 2-5 days. The underwriter makes sure that your information fulfills the guidelines set forth by the FHA, such as employment history, income and debate ratios, etc. They will either approve you for a loan, suspend your file because more information is needed, or they will deny you a loan all together.

With a credit score of 720, what will my $200k payment be for a first time buyer?

The cost varies according to yearly salary, property tax and a variety of other financial payments that you have to make. If you go to the FHA Calculator on our website, and fill out the information, it should give you the exact payment that you will have to make.

My husband and I are looking to purchase our first home. We have no money for a down-payment because we have been in school. Is there a minimum salary that you must make to qualify for an FHA loan, because we need help!

In order to apply for an FHA Loan you need to have all the addresses where you have lived over the past few years, your employer's name and addresses for the past two years, plus the amount of your gross monthly salary. You will also need your W2's and your income tax for the last two years. Receiving a loan does not depend solely on your current salary, but also your financial circumstances over the past several years. You will also be required to have at least 3% of your own funds for the purchase of your home.

If I had an FHA loan that went to foreclosure in 2003, can I apply for another one or not?

Yes. You can apply for an FHA loan three years following the date that you filed for bankrupcy. You may apply for this loan provided that you have maintained good credit for the two years following your file for bankrupcy. It is also required that all your debts have been discharged when you reapply for a loan.

What is the usual time frame that the FHA takes to approve you for a loan once they have received your paperwork?

The time frame for receiving approval from the FHA varies. It can take anywhere between 6-8 weeks following the arrival of your paperwork for the FHA to approve you for a loan.

Is sending one extra payment every year really cutting much time off your 30 year loan? -Evangeline

Yes. If you send in one extra payment each year, you will reduce the total time of the loan by 1 year every 12 years. So for a 30 year loan, you would reduce the total time by 2.5 years. By paying extra each year, you will also save money in reduced interest as well.

How can you buy a house without a Social Security Number? -Eva

Without a Social Security Number, it is probably assumed that you are an undocumented immigrant to the United States. We want you to know this is illegal, and even if you purchase a home you would still be subject to deportation laws.

I've been pre-approved by my lender. Does this mean most likely the FHA will approve on their end? -Kevin

There is a difference between pre-approved and pre-qualified. You are pre-qualified if you have filled out a form on the lender's website, and at the end they tell you that you are pre-qualified. You are not pre-approved until the broker and the lender and reviewed all of your information and agree to work your loan.

What are the requirements for a FHA Mortgage Loan?

Please review the FHA requirements here.

Are there special incentives for individuals who were in designated Hurricane Katrina Disaster zones? -Shaun

The largest incentive in these areas is that in designated Katrina and Rita disaster zones, employers can receive tax credits for providing employees housing. For a six-month period, employers are eligible for a 30% tax credit for the cost of employer-provided housing for employees, with a maximum cost of $600 per month per employee located in the Zone. Additionally, up to $600 per month of such costs would be excluded from the employee's income. Read the full Zone Act of 2005.

My fiance and I were pre-qualified for a FHA Home Loan. With FHA, we are required to come up with 3% down. Do you know of any down payment assistance programs that we can use in the state of Wyoming? -Virginia

We are unaware of any down payment assistance programs specific to Wyoming. However, there are some National Programs that should work for you. Please find more information on them here.

What costs must a bank include in the APR when posting rates? -Allison

Unfortunately, there are no set specific guidelines for posting an Annual Percentage Rate. Generally speaking, the APR should include all settlement costs that would not have arisen in an all cash transaction. Here is a more comprehensive list of what types of charges are supposed to be included in the APR.

Can a borrower have more than one FHA mortgage? -Melinda

Good question, please see the answer to your question here.

Is there a specific type of loan ARM loan program that has caps of 1/4% versus the traditional annual and lifetime caps? -Hayden

An interest-rate cap places a limit on the amount your interest rate can increase or decrease. There are two types of caps: Periodic or adjustment caps, which limit the interest rate increase or decrease from one adjustment period to the next. Overall or lifetime caps, which limit the interest rate increase over the life of the loan. It is up to you which type of ARM works best, there are pros and cons to both. While we cannot say for sure you would be able to qualify for a loan with a periodic cap of 1/4%, it is certainly possible. It is up to negotations with the lender which type of cap and the amount of the cap you will qualify for.

We already got pre-qualified for a FHA loan but we are having trouble coming up with the 3% down. Is there any way to avoid having a down payment? -Nicole

Currently, there is no way around the down payment requirements of a FHA loan. However, Congress is currently working on improvements to the FHA program that could reduce or eliminate down payment requirements in the future.

Can you provide a list of Visas that are eligible for an FHA loan?

Only US citizens and resident aliens are eligible for an FHA loan. However, any individual in the United States on an acceptable work visa can be eligible for a conventional home loan.

My husband purchased our existing home before we were married with a FHA loan. Can we qualify for an FHA loan now since I have never purchased a home and we now have a child and the home is to small? -Michelle?

There are a few cases where an individual can have more than one FHA loan, including if your family has outgrown your current home. It sounds like this is the case here. It is possible you will not need two FHA loans at the same time, because the sale of your current home will allow you to close that mortgage with the bank, and perhaps you will even have additional money to put toward your new home. While we cannot guarantee you will qualify without knowing specific details of your loan, odds are if you qualified for a FHA loan in the past, you will qualify for one again.

On a FHA loan what are the buyer cost at closing? - DW

In each case, the closing costs will be different. The FHA defines allowable closing costs that may be charged to the borrower. These costs are determined as reasonable and customary by each local FHA office. It differs by state, purchase price, type of loan, down payment and lender, just to name a few. The best way to determine your closing cost is to ask your lender. Read more about FHA closing costs here.

We are purchasing a home. Can we take out an FHA loan to purchase the house with additional money for home improvements?

Generally speaking, you cannot take out more than the value of the home when you purchase it. However, once you have built up some equity in the home, you can take out a FHA refinance to make home improvements. However, the FHA does allow you to finance the cost of energy-efficient home improvements with your mortgage. These are considered home improvements that will make your home more energy-efficient and lower your monthly utility bill.

The total value of our house is about $250,000. If we qualify for a FHA loan at the maximum amount of $200,160, can we look into other programs that will cover the rest of the amount? Also, we wanted to know if our friend does not qualify to get a FHA loan by himself and we get on the loan with him, can you use our info along with his to determine the loan? -Cindy

Yes. You can use a variety of options to take out a loan for $50,000 to cover the remaining amount.

Do you have to pay off a HELOC (Home Equity Line of Credit) when refinancing thru FHA?

It is up to the lender that has the HELOC, whether they will allow a another mortgage to supercede it. Many times, they will as long as the new first mortgage does not significantly increase from the previous. For best information on this, contact the servicer of your HELOC and they can tell you whether they will subordinate or not to a new first lien.

My ARM home loan is due to reset in about 5 months. I am considering refinancing to a 30-year fixed mortgage. Would an FHA home loan be an option? - John

In most cases, it is possible to refinance a conventional home loan into a FHA refinance. So without knowing the specifics, generally speaking, you should be able to qualify for a FHA Refinance.

Can an individual have more than one FHA loan? - Victoria

There are a few cases where an individual can have more than one FHA loan. If you meet at least one of the following three situations, it is possible to have more than one FHA loan: You are relocating for a new job and your new job is not within normal commuting distance of your current home. You can document that you and your family have outgrown your existing home, and another one is needed. You co-signed for another person for an FHA loan, but you do not occupy the house with this person. Of course, you can always request an FHA refinance for your FHA loan or any type of loan.

Could you explain to me the Extra Credit Teacher Home Purchase Program. How does it work? What are the benefits? What are the qualifications?

This is a program specific for teachers in California. Though it doesn't necessarily relate to FHA loans, please find the benefits and qualifications from the California Housing Finance Agency.

Could my immigration status affect my application for an FHA loan? I am neither a US Citizen nor a Permanent resident yet, but a missionary in the process of filling for my Permanent Residence status. I need to buy a home now. Could I apply for an FHA loan? - Zedian

Because FHA loans are funded by the U.S. Federal government, only citizens and lawful permanent residents should apply for these loans. Furthermore, if you do get a FHA or other government backed loan, the government has the right to look at the FHA files and decide to go to the house to see if the owners have legal status or not. This could include if you received a government back loan when you were not a permanent resident, but later became one. In your situation, it seems best that you apply for a conventional home mortgage.