Comments on: FHA Mortgage Loan Requirements Guide

By: Jenn

Jenn — Sun, 28 Feb 2010 20:15:06 +0000

I am a first time home buyer and currently supposed to close on my new home on Friday. Pyramax is currently giving me the run around on my FHA. I had to paint the outside of the house because of pealing paint (minor) in WI in Feb as a requirement and was told I could not escrow these repairs. Painting was completed in a snowstorm and since it was below 60* we will have to repaint in spring. Was this correct that we couldn’t escrow the repairs ($500)? I am now being told that even though we have given written proof of home insurance for the year on the new home that we still are required to escrow our home insurance because it is a FHA loan. Is this correct?

By: Aaron

Aaron — Mon, 14 Dec 2009 20:04:42 +0000

Just last week I was told that I could get an FHA loan. Then the lender said because I’m overseas, that I wouldnt occupy the home for 50% of the time. I have good credit, a great savings account, and checkings, and more than three years on the job, and you mean to tell me I cant get a home under FHA!!! So its seems to me, that I would have to loose evrything work in the states, under a bad economey, make less money, and then I can get a home. WOW!!!

By: Brian

Brian — Wed, 18 Nov 2009 07:44:28 +0000

Rico,

Yes, I’m experiencing the same issue.

While I’m 100% US-based, I’ve had two separate FHA loan attempts shot down due to my employer being unable to guarantee my contract will last for 3 years (it’s currently a minimum of 2 years). In both cases the lender thought they could work around this, but this was not the case.

As you said, what company can guarantee a “permanent employee” will be employed with them in three years?

By: Rico

Rico — Thu, 29 Oct 2009 05:15:28 +0000

Hi there, I’m currently processing an FHA through Lending Tree; I was lead to believe it would go through without any issues… I informed them up front that I was and still am an overseas contractor for the past 5 years. Everything was fine until now when I’m being told that my loan may not be approved because my employer would not guarantee I would be employed for the next three years, they did state that the contract would last three years… is this an FHA requirement? What employer would make such a guarantee? Would any of your employers make such a statement? This seems to me a bit odd to say the least, in addition I have to prove that I would reside at the home for 50% of the time… again they knew upfront I was an overseas contractor I spend possible 30 days of the year in the US… nonetheless I had to pay the lenders processing fees upfront to find out now that I will more than likely not get the loan for these two reasons. Can anyone comment as to the validity of these requirements?

Thanks

By: Madeline Sanders

Madeline Sanders — Mon, 26 Oct 2009 14:45:13 +0000

If your question means that you currently have an FHA loan, the answer is you can purchase another property using FHA financing w/certain provisions in place which are: (1) increase in family size & thus need for more space or (2) relocation due to employment. There might be one more which needs to be researched.

By: AloraF

AloraF — Sat, 17 Oct 2009 22:04:46 +0000

I have a 100% paid for home I purchased 7/13/09. How long do I have to “own” it before I can apply for a home loan?

By: BenC

BenC — Wed, 30 Sep 2009 21:20:46 +0000

Do you have anymore information on the income requirements? I’ve worked at four different companies in the past two years with a variation in my payscale of around $10K. I’m at the low end of that right now and we’re trying to buy a new house. We’re not first time home-buyers and with the housing market as it is, after we sell our current house, we’ll only get around 10% of the downpayment we’d like to place on our new house.

By: Betty Kincaid

Betty Kincaid — Sun, 27 Sep 2009 19:15:06 +0000

Jim,

FHA loans make sense when the borrower has good credit and is able to make the monthly payments. It is the loan of choice for a quarter of first-time home buyers and as prices drop, more properties qualify for FHA financing.

One note: FHA is a government program so although it’s ostensibly “self-funded” all actions are backed by the full faith and credit of the US Government. In other words, you & I are guaranteeing all those mortgages.

Here’s a great article about FHA’s precarious reserve position:
http://www.realestateconsulting.com/Newsletters.aspx?quicklaunch=true&newsletter=Strategic/strategic200909

By: Jay

Jay — Sun, 27 Sep 2009 12:50:56 +0000

Here are all the FHA Loan Limits by County all across the country.

http://www.docstoc.com/docs/6757353/FHA-Loan-Limits-by-County

By: Jim

Jim — Sun, 27 Sep 2009 01:38:06 +0000

I’m going to have to check VA and USDA loans out for a future post. THanks Kat!

By: Kat

Kat — Sat, 26 Sep 2009 16:43:14 +0000

Don’t forget the Veteran Affairs loans.

By: Jim

Jim — Fri, 25 Sep 2009 13:02:52 +0000

After your comment I did some research into that USDA program, I had no idea it even existed. Thanks for your comment, a post is forthcoming.

By: Sandra

Sandra — Fri, 25 Sep 2009 04:20:21 +0000

It sucks, I have a client who is closing on their home tommorow. They put 20% down, and because it was not 22% down, they had a premium of over 5k for their mortgage insurance, and they’re stuck with it for 5 years. ;( However, it was our only option. The house was originally listed at 520k, and they got it for 380k, so it was worth it! Another program a lot of people don’t know about is USDA, which allows a borrower to buy with no money down. It does have income limits, and the house has to be eligible.

By: Ken

Ken — Thu, 24 Sep 2009 19:09:28 +0000

Also you can only drop the insurance after 5 years if the LTV is 78% or less.

So that means 5 year minimum of insurance payments no matter what.

By: Laura M.

Laura M. — Thu, 24 Sep 2009 14:32:49 +0000

I believe the minimum required downpayment for FHA went up to 3.5% as of 01/01/09.