What are the rules for FHA loan down payments? Some first-time homebuyers looking for a first home don’t realize you can’t just make the down payment by providing a check to your lender. There are strict rules about down payments–they must come from approved sources, they must be accompanied by any supporting documentation showing where the money comes from, etc. You, the borrower, are allowed to apply for a home loan and make a down payment on the house you make an offer on, but when you make that down payment you must document the sourcing of the money. As in, where did it come from? A cashed-in investment? That’s permitted under FHA loan rules. Did your down payment money come from a pink slip loan or a credit card | more.
As you get closer to the day when you sign the paperwork, pay your closing costs, and take possession of your new home, there are some important mistakes to avoid. Do you know what they are? FHA home loan closing day is an important milestone; make sure you know what to expect leading up to the big day. Don’t Move The Same Day You Close Closing dates can change, circumstances may require a new closing date. If you hired movers or rented a truck on the same day that you are supposed to close the deal, you may be disappointed. Don’t Be In A Hurry Take the time to carefully read all documents you are required to sign, don’t skip the home inspection, and don’t give in to any kind | more.
How Much Do I Put Down On An FHA Home Loan?
There are persistent myths and misunderstandings about home loans. One persistent myth is that FHA mortgages are only approved for first-time home buyers. Another is that FHA loans are only for low to moderate-income borrowers. And a third–and the focus of our article–is that you have to make a 20% down payment on a home loan. What’s the reality? FHA home loans do NOT require a 20% down payment, even if you are at the lower end of the qualifying credit score range. Continue reading “FHA Home Loans: Mistakes To Avoid When It’s Time To Close”