FHA Loan Article Library

Borrowers received this list of estimated closing costs early in the mortgage application, but some found the document confusing, especially when the numbers on that statement did not match the final numbers on the HUD-1 Settlement Statement provided at the end of the transaction.

The Federal National Mortgage Association, or Fannie Mae, began in 1938 to provide home loan funding during the Great Depression. Fannie Mae primarily buys loans from large national banks and high-volume financial institutions, supporting the largest lenders in the country.

The HUD-1 Settlement Statement was officially retired on October 3, 2015, replaced with a document called the Closing Disclosure. The goal was to consolidate overlapping federal forms into a single document so borrowers could review their final loan terms three days before signing.

The goal of the Obama Mortgage was to provide a standardized approach to mortgage assistance. There were home loan modifications, refinancing options, and foreclosure alternatives. The government committed billions of dollars to encourage participation from private banks and investors.

Why do many believe that Gen Z is the primary growth driver in the entry-level housing market? Gen Z people are entering the housing market earlier than Millennials did at the same age. Members of this generation seem to prioritize property as a means of achieving financial stability.

Some borrowers assume that all lenders offer basically the same things at more or less the same cost, but if you are a first time home buyer looking to pay less up front on your mortgage, you will soon learn this is not necessarily true.

The FHA loan program allows scores as low as 580 with a small down payment. This flexibility is a major draw, allowing Millennials to stop renting and begin building equity earlier than they would otherwise. Building equity is the primary way this demographic intends to build wealth.

Re-establishing credit is required during a bankruptcy waiting period. A secured credit card is often used to do this. How does it work? The borrower deposits cash into a bank account to act as collateral for the credit line.

Lenders look for financial stability, especially within the last two years. If a borrower has a clean recent record, HUD considers them a better risk. Your credit report tells the lender whether or not you’re a good risk at the time of application.

For seniors who are looking to manage their bills or add extra liquidity to their finances, a HECM loan is an FHA option to consider. An FHA HECM does not involve monthly mortgage payments. The borrower retains ownership and can live in the property.