Axios – 1 year ago The Federal Housing Administration is issuing guidelines to help buyers prepare for the coming wave of homebuyers in a market that has seen a record number of foreclosures, a significant increase in underwater mortgages and a dramatic rise in foreclosing.
The agency is urging buyers to consider the following: • If you’re not in a major metropolitan area, be sure to check the state’s mortgage rules before applying for a mortgage.
The bureau does not include all the state-specific rules in its rules, but they typically cover more than 100 percent of mortgages.
• If your state does not have a mortgage lender’s approval for your mortgage, you may need to obtain a financing agreement with a different lender.
• In many states, you will be required to pay a percentage of your down payment, known as a loan-to-value ratio, or LOV.
The more you pay, the more you’ll pay down the loan, which will reduce your monthly payments.
• Be sure to consult a home loan professional who can help you understand your mortgage loan.
• You should not apply for a loan if you or your family have lived in your home for more than three years.
• While you should always get your financing from a financial institution, you should consider a bank, savings and loan, or credit union, as well.
You can also consider other lenders such as credit unions or loan-underwriting companies.
The FHA says lenders should make it clear that if they offer you a loan, they will be responsible for financing the loan and any associated fees and costs.
For more tips, check out FHA’s FAQ on how to prepare for home purchases.