Buying a home is a dream that’s shared by many people. Making that dream come true isn’t always as simple as just going out and applying for a mortgage loan, though. Some potential homeowners need a little bit of assistance in keeping loan requirements manageable, even though they are fully able to afford the loan itself. Fortunately, there are a number of home loan programs that can help make home ownership attainable even for first-time buyers and those who worry that they might not meet all of the requirements for a traditional mortgage loan.
It’s important to keep in mind that the rules and requirements for these loan programs are updated from time to time. Before starting out looking for the home of your dreams, you should make sure that you are up to date on the exact terms of the loan program you’re considering using. Here is some information on some of these updates to help you along your way.
FHA Loan Updates
Loans that are insured through the Federal Housing Administration are usually known as “FHA Loans,” and the programs offered by the FHA are some of the most commonly used by potential homeowners. The FHA doesn’t offer these loans directly, but instead creates an environment where loans can be more easily attained from FHA-approved lenders. Because this is a federal program, the terms of the loan programs are often tweaked to better match data from other federal agencies based on economic trends.
For 2022, there were a few updates made to FHA loan programs. There were some changes to things like the maximum amount that can be borrowed using an FHA loan, though this amount varies based on local factors, so it was not an across-the-board increase. For the most part, though, the changes mostly affected details on the lender side of things. FHA-approved lenders now have new requirements regarding things like loan reporting and how they handle verification of applicants, but this doesn’t affect the borrower’s experience very much. Requirements such as having a minimum credit score of 580 to qualify for maximum financing (and 500 to qualify for the program at all) and supplying income documentation such as bank statements, pay stubs, and tax returns remain the same from previous years.
Exploring Loan Programs
If you’re looking at loan programs that aren’t offered through the FHA but are instead offered by private companies, there may be changes from previous years that you’ll need to consider as well. Many of these programs fall largely in line with the requirements of FHA-backed loans, though there may be some differences. While there weren’t many major updates to non-FHA programs announced last year, it’s possible that there were some changes that you weren’t expecting to the specific program you’re considering. Fortunately, finding updates about the requirements and functions of these programs isn’t difficult so long as you know what you’re looking for.
Most updates for loan programs are released in the fall, so check for any announcements regarding program changes that were made around October or November of last year. If you’re downloading information about the loan program, you should also be sure to download directly from the program’s homepage and select the latest available information if there are multiple documents listed. By taking the time to find out the latest information about the program you’re considering, you can avoid surprises when it comes time to apply.
Finding the Perfect Home Loan
FHA loans and similar programs from other providers can help make the dream of home ownership into a reality. And when it comes time to actually move into your home,
If you have questions about buying or selling your home, you may contact me to see how I can help you.
Michelle Lohman, Associate Broker
Realty One Group
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