When to Back Out of an FHA Offer

You did all you were supposed to do. You got your financials in order, completed an FHA loan application and have your preapproval letter in hand. Working with your real estate agent, you found the perfect property in the ideal neighborhood at a price you can afford. You’re ready to go, right? Well, maybe not

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What Is FHA’s Minimum Credit Score?

The Department of Housing and Urban Development’s FHA loan program doesn’t require a minimum score. However, FHA lenders do. FHA lending guidelines require FHA lenders to determine the borrower has met certain minimum credit standards such as timely rent payment, payments on non-deferred student loans and revolving and installment credit accounts. Borrowers with a credit

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What Happens During an FHA Property Inspection?

Here in Texas, sales contracts have language inserted that allows buyers to have a property inspected by a licensed property inspector after the contract has been signed by both the buyer and seller. Within a specified time frame, buyers are allowed to hire and review a completed property inspection report. If something pops up that

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The Best FHA Loan Term

You’ll have lots of choices when it’s time to buy and finance your first home. You’ll need to decide where you want to live, how much you’d like to pay and what type of loan program is best for you. The most popular loan program for first time home buyers in Texas isn’t restricted to

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How to Lock an FHA Mortgage Rate

FHA mortgage lenders must follow certain rules when advertising their FHA mortgage rates. Long ago, to avoid deceptive ads, lenders had to comply with Truth in Lending laws, which require lenders to display more than just an interest rate. Yet once they do comply, those advertised rates may be of no use to you. At

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How Interest Works on an FHA Loan

It’s relatively easy to figure how mortgage interest works on an FHA loan. An FHA lender will loan money and expect a given rate of return, based upon the interest rate. If a 30 year FHA mortgage has a 3.50% rate assigned to it, that’s profit to the lender in return for issuing money to

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FHA Origination Fees and Discount Points

When you apply for an FHA loan here in Texas you’ll be provided with an estimate of potential closing costs. There are lender fees as well as third party fees such as escrow charges and insurance coverage for instance. Two of the lender fees that will appear on the estimate are origination fees and points

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Acceptable Sources for FHA Down Payment Money

FHA loans only require 3.5% down, there are only two other loan programs on the market requiring less, one is reserved for rural properties while the other is the VA home loan for veterans. Yet FHA loans have no limiting factors and are by far the most popular choice for first time home buyers. Still,

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