Average 30-year mortgage rate falls to % #commercial #mortgage


#30 mortgage rates

#

Average 30-year mortgage rate falls to 3.62%

The Associated Press | Feb 25, 2016

WASHINGTON – Average long-term U.S. mortgage rates fell this week as anxiety over the global economy persisted. Long-term rates resumed their decline after being unchanged last week following six straight weeks of easing.

Mortgage buyer Freddie Mac said Thursday the average rate on a 30-year, fixed-rate mortgage slipped to 3.62% from 3.65% last week. That puts it well below the 3.80% it marked a year ago.

That was the lowest level for a 30-year fixed rate since early February of last year.

The average rate on 15-year fixed-rate mortgages declined to 2.93% from 2.95% last week.

Mortgage rates have continued to fall despite the Federal Reserve’s decision in December to raise the short-term rate it controls for the first time since 2006.

Global economic worries and turbulence in world stock markets have pushed up prices of U.S. government bonds as investors seek safety. That has depressed the yields on the bonds, which mortgage rates follow. The yield on the 10-year Treasury bond has dropped to strikingly low levels below the significant 2% mark.

The benchmark yield stood at 1.75% Wednesday, down from 1.81% a week earlier. The yield fell further to 1.70% Thursday morning. That compares with 2.27% before the Fed’s rate hike on Dec. 16.

Despite the decline in mortgage rates this year, new government data show that Americans stepped back from buying new homes in January, as purchases plunged sharply in western states where prices are typically higher.

The Commerce Department said Wednesday that new-home sales fell 9.2% last month to a seasonally-adjusted annual rate of 494,000. Most of the decline stemmed for a 32.1 drop in sales in the West. Sales also slipped in the Midwest, while edging up in the Northeast and South.

Continue reading below

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Minimum FHA Credit Score Requirement Falls 60 Points #loan #mortgage #calculator


#fha mortgage requirements

#

Minimum FHA Credit Score Requirement Falls 60 Points

Minimum Credit Score For Home Loan

The minimum credit score for a home loan is 500, however, it’s possible to get a mortgage loan with no credit score at all. FHA loans require no credit score; and, VA loans, USDA loans, and conventional loans each require a minimum credit score of 620. Exceptions can be made to minimum credit score policies for borrowers with reasonable cause.

Minimum FHA Credit Score Drops 60 Points

It’s getting easier for borrowers to get an FHA-backed home loan.

Major lenders will now approve FHA mortgage applications for borrowers with FICO scores of 580. It marks a 60-point improvement over 2014, when FHA lenders required 640 FICO scores or better to get approved.

The news comes at a time when FHA loans are in demand.

The program’s 3.5% downpayment minimum is among the most lenient for today’s home buyers; and underwriting requirements on an FHA loan are flexible and forgiving.

FHA loans account for close to one-quarter of all loans closed today.

FHA Loans Allow 3.5% Downpayment

FHA loans are an important component of the U.S. housing and mortgage market.

FHA loans are loans which are insured by the Federal Housing Administration and made available to U.S. buyers and existing homeowners.

The FHA was formed in 1934 and it exists to provide affordable housing to Americans. Today, it’s the largest insurer of mortgage loans worldwide.

The Federal Housing Administration doesn’t actually make loans. Rather, it insures loans made by the nation’s banks, providing protection against default and loss.

In order to gain the FHA’s protection, lenders must only make sure that the loan in question meets the lending standards as set forth by the FHA.

The FHA’s rule book is known as the “FHA guidelines” and it describes all allowable loan traits, as well as the going terms of an Federal Housing Administration-backed loan.

For example, FHA guidelines state that home buyers must make a minimum downpayment of 3.5 percent against a home’s purchase price; and that buyers can be cleared to buy a home 12 months after a bankruptcy, short sale, or foreclosure .

Guidelines also place limits on the size of an FHA-backed loan, which varies by county.

FHA loan limits range from $271,200 for a single-family home to $1,202,925 for a 4-unit home.

Fewer FHA “Investor Overlays” Means More Approvals

FHA mortgage guidelines define which loans the Federal Housing Administration will, and will not, insure. However, U.S. lenders don’t underwrite loans to the FHA guidelines as they’re written, to the letter.

Lenders impose additional restrictions known as investor overlays which make it harder for an applicant to qualified for an FHA-backed loan.

One such overlay is linked to the FHA Streamline Refinance.

According to the official FHA guidelines, with an FHA Streamline Refinance. lenders are not required to verify income, employment or credit scores. Yet, many lenders choose to verify regardless.

This is because the FHA penalizes banks for making too many “bad loans” and verifications can cut down on defaults.

Another important overlay is linked to your credit score.

The FHA rules state that it will insure home loans for which the borrower has a credit score of 500 or higher. Banks, however, are reluctant to make such loans.

Buyers with credit scores of 500 are highly likely to default in the next 6 months, which would negatively affect a bank’s FHA default rate, leading to fines, penalties, and perhaps, termination from the FHA insurance program.

Beginning in late-2011, most banks enforced a minimum credit score for FHA loans of 640. That minimum score has since been lowered.

U.S. home buyers can now get an FHA loan with credit scores of just 580.

Furthermore, with the domestic economy improving and U.S. housing expanding, it’s not unexpected that minimum FHA FICOs would drop again soon.

What Are Today’s Mortgage Rates?

For today’s U.S. home buyers, the Federal Housing Administration mortgage is among the most lenient and forgiving mortgage programs available. Find out whether you’re FHA-eligible.

Get today’s live mortgage rates now. Your social security number is not required to get started, and all quotes come with access to your live mortgage credit scores.

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.


Average US 30-year mortgage rate falls to new 2016 lows #fha #mortgage


#30 year mortgage rate

#

Average US 30-year mortgage rate falls to new 2016 lows Associated Press Thursday, July 7, 2016
PAUL WISEMAN

WASHINGTON (AP) — Long-term U.S. mortgage rates fell this week to the lowest level since May 2013, driven down by financial tumult in Europe.

Mortgage giant Freddie Mac says the average 30-year fixed rate mortgage fell to 3.41 percent from 3.48 percent a week ago. A year ago, the 30-year rate stood at 4.04 percent. The 15-year mortgage rate dropped to 2.74 percent, down from 2.78 percent last week and 3.20 percent a year ago.

After Britain’s recent vote to leave the European Union, worried investors fled to the safety of U.S. Treasury bonds. Long-term mortgage rates tend to track the yield on 10-year Treasury notes, which fell to 1.37 percent Wednesday from 1.75 percent before the Brexit vote.

The 30-year fixed rate is now close to its all-time low of 3.31 percent in November 2012.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage remained at 0.5 point this week. The fee for a 15-year loan was unchanged at 0.4 point.

Rates on adjustable five-year mortgages averaged 2.68 percent this week, down from 2.70 percent last week. The fee remained at 0.5 percent.


Average 30-year mortgage rate falls to % #adjustable #rate #mortgage


#30 mortgage rates

#

Average 30-year mortgage rate falls to 3.62%

The Associated Press | Feb 25, 2016

WASHINGTON – Average long-term U.S. mortgage rates fell this week as anxiety over the global economy persisted. Long-term rates resumed their decline after being unchanged last week following six straight weeks of easing.

Mortgage buyer Freddie Mac said Thursday the average rate on a 30-year, fixed-rate mortgage slipped to 3.62% from 3.65% last week. That puts it well below the 3.80% it marked a year ago.

That was the lowest level for a 30-year fixed rate since early February of last year.

The average rate on 15-year fixed-rate mortgages declined to 2.93% from 2.95% last week.

Mortgage rates have continued to fall despite the Federal Reserve’s decision in December to raise the short-term rate it controls for the first time since 2006.

Global economic worries and turbulence in world stock markets have pushed up prices of U.S. government bonds as investors seek safety. That has depressed the yields on the bonds, which mortgage rates follow. The yield on the 10-year Treasury bond has dropped to strikingly low levels below the significant 2% mark.

The benchmark yield stood at 1.75% Wednesday, down from 1.81% a week earlier. The yield fell further to 1.70% Thursday morning. That compares with 2.27% before the Fed’s rate hike on Dec. 16.

Despite the decline in mortgage rates this year, new government data show that Americans stepped back from buying new homes in January, as purchases plunged sharply in western states where prices are typically higher.

The Commerce Department said Wednesday that new-home sales fell 9.2% last month to a seasonally-adjusted annual rate of 494,000. Most of the decline stemmed for a 32.1 drop in sales in the West. Sales also slipped in the Midwest, while edging up in the Northeast and South.

Continue reading below

You may also be interested in

America’s best (and worst) car brands

5 chains joining Starbucks in pumpkin spice craze

Just Cool Cars: This 1911 Benz has a Titanic link

What disability benefits mean for your spouse s Social Security

Hidden gems if you want to retire overseas


Girard Auction, South Dakota – s premier auctioneer of the best farmland, estates, and unique


#

Auction Marketing Specialists in:

  • Farmland
  • Residential Real Estate
  • Acreages Hobby Farms
  • Recreational Property
  • Commercial Income Producing Real Estate
  • Collector Cars, Trucks Motorcycles
  • Vintage Modern Farm Equipment
  • Farm Construction Toys
  • Estates
  • Specialty Collections

Receive
weekly updates on auctions and events.
It s Free!

Receive text message Alerts on your cell phone!

Never miss another auction!

When we needed to disperse a major collection, we wanted an auction company that was knowledgeable, professional, and honest. Girard s was a pleasure to work with in every respect and I recommend them most highly
Rod Erickson, Retired President,
Penn State University

You Can Participate in our online auctions too!

Another great thing about Girard Auction is our auctions at our auction site Girardbid.com. We have proudly been industry leaders, helping pioneer online auctions.
There are a couple steps to follow before you can participate in our our online auctions. Click here to see how.

PLEASE NOTE: We STRONGLY encourage you to sign up at Girardbid.com at least a day prior to the auction you would like to participate in.

I want to thank the entire Girard Auction staff and family for superbly conducting our auction of farm toys – from the advertising and promotion, getting the toys arranged/displayed at the sale site, the on-line bidding setup, and then auction itself. It was a positive experience for Roberta and I.
Don and Roberta Antholtz, Lincoln, Nebraska

Apples to Apples.

Auctions are a big event, and we know that. Which company you choose for your auction can make a HUGE difference in the success of your auction.
When you’re in the process of choosing your auctioneer, here are a few things to consider:

  • We’ve been hosting successful auctions for over 40 years, and experience matters! Our team has 90+ combined years of selling farm land and auctions of all types.
  • Our use of modern technologies like online bidding, and comprehensive marketing, allow us to truly merge technology with tradition.
  • We sell thousands of acres of ag land, countless tractors and implements, and specialty collections each year.

So contact us today with questions regarding your upcoming auction, or better yet, please attend our next event to see the difference it makes when you choose to work with Girard Auction and Land Brokers.


10 tips for writing a grad school personal statement #campus #life, #career #path, #voices #from


#

10 tips for writing a grad school personal statement

(By Tracy Bennett, Metro-Goldwyn-Mayer Pictures)

A filmed personal statement might have helped Elle Woods get into Harvard Law School, but in the real world, you re better off sticking to these tips.

If you have seen the 2001 film, Legally Blonde. you might remember that Elle Woods, played by Reese Witherspoon, creates a video for her admissions essay to Harvard Law School. As she sits in a hot tub, she states that she will be an “amazing lawyer” because she can discuss important issues, such as the brand of toilet paper used in her sorority house, and she uses “legal jargon in everyday life” to object when men harass her. She can also recall details at the “drop of a hat,” including the recent events on a soap opera. (If you haven’t seen the movie or simply want a good laugh, you can view the clip on YouTube .)

Although the Harvard committee granted Elle admission, you will probably want to take your essay in a different direction. While you cannot change your grade point average or entrance exam scores, you have complete control over the contents of your personal statement. There are many applicants and few spots, so work diligently to persuade readers that you fit their program given your qualifications, interests and professional goals. Use the tips below to prepare and refine your essay.

Yes, your first sentence should be compelling and attention-grabbing, but if you attempt to identify your opening line immediately you will probably induce writer’s block. Make an outline or free write. You can tweak the introduction later once you are more aware of your noteworthy accomplishments or the defining events that have led to your career interests.

2. Articulate your reasons for selecting your chosen career.

Although these essays are often called personal statements, they are not an autobiography. Instead, view it as an essay about your journey as an emerging scholar. Provide evidence to demonstrate that you have actively confirmed your interests and that earning an advanced degree will help you achieve these goals. Describe the courses, articles, professors, research, service projects, internships, shadowing or co-curricular activities that have shaped your aspirations. Avoid references to high school accomplishments, gimmicks or clichés such as, “I have always wanted to be a _________.” Cautiously address controversial topics. It is one thing to demonstrate your knowledge of the field by referencing a current debate. It is quite another thing to offend your readers with excessive political or religious rhetoric.

For example, it is not enough to say that you aspire to be a social worker because you want to help children. You could do this in a variety of occupations. Similarly, anyone can say that they are interested in law. Earn credibility by demonstrating this passion. Have you worked at a law firm or participated in student government, Model UN and/or mock trial?

4. One size does not fit all.

Unless it is a common application system, such as those used by law, physical therapy and medical schools, you should describe your rationale for selecting the program among other alternatives. By the way, most of the schools that use a common application system will require supplemental essays that inquire about this. For the time being, you may omit it from your initial personal statement. Each institution has its own values, mission and faculty. What led you to select its particular program over others? Was it an emphasis in a particular area (e.g. rural practice, technology) or the research interests of a professor? Was your interest heightened by a conversation with its alumni?

5. Whatever your reasons for applying, be sincere.

Briefly mention any noteworthy and appealing features that attracted you to the program or institution, but do not go overboard. Committee members already know the prestigious awards that they have won, and most of your competition will mention these same attributes. If you offer excessive praise, you may only appear disingenuous.

6. Describe your professional interests, particularly as they relate to research.

If you identified faculty members who share your interest in a topic, describe your desire to work with them. Be specific, but keep your options open, too. Committee members will roll their eyes if you say you are interested in every research area of its faculty. On the other hand, if your interests are too narrow, they may question your ability to collaborate with professors.

7. Demonstrate your motivation and capacity to succeed.

Graduate schools are not only selecting students, but they are also choosing future ambassadors of their program. Persuade them that you will contribute to their reputation as an institution throughout your academic studies and professional career. Avoid summarizing other parts of your application. Instead, you should provide them with concrete examples including relevant publications, presentations, classroom assignments and employment experiences. For example, describing a service project could demonstrate your compassion, which some medical schools value. If you collaborated with others on a research topic, describe your specific contribution. Research in particular is valuable to your readers because you will more than likely need to immerse yourself in this activity during your graduate studies, especially if you are a Ph.D. candidate.

If you have any blemishes in your application, such as low test scores, criminal convictions or poor grades, think carefully before you offer a rationale. If you were to survey career coaches and faculty, some would advise you to describe anomalies because, if you do not, you leave it open to imagination. Others, however, would only encourage you to share details if the graduate program requests it. Advisers on this side of the camp fear that graduate programs may perceive such descriptions as potential liabilities or excuses, especially if your grades were repeatedly low. For example, while committee members may empathize if you reveal that you struggle with test anxiety, they may still question your ability to succeed. Most graduate programs entail tests, and many occupations require individuals to pass licensing examinations before they can enter the fields. Applicants’ inability to perform in this arena may jeopardize the professional standing of the institution.

If you elect to include this information, be brief and positive. Keep it simple and do not be defensive. Perhaps your academic ability improved once you discovered your passion. Maybe you persisted despite a serious illness or death in your family. If you decide not to address these anomalies yourself, consider asking one of your trusted references to include the topic from a positive standpoint in your letter of recommendation.

Personal statements are generally no more than two pages. If the sentence is not essential to your thesis, remove it. Also eliminate unnecessary words, such as “in order to,” “I believe” and “the fact is.”

9. Carefully proofread and refine the essay.

Any errors reflect your ability as a writer. Confirm that you used transitions, diverse sentence structures, first person and active voice. Substitute weak words, such as “love,” with a more professional, powerful alternative. Let it sit overnight. Then, read it aloud or backward. Have a consultant at your campus writing center or a professor critique the essay.

10. Enjoy the writing process.

Preparing a personal statement confirms your desire to attend graduate school and clarifies your interests or goals, which is why professional schools require it. A few years from now, this will prove helpful in your professional job search as you write cover letters and respond to interview questions.

Billie Streufert is director of the Academic Success Center at the University of Sioux Falls in South Dakota. With nearly 10 years of experience in career and academic advising, she is passionate about helping individuals discover and achieve their goals. She is eager to connect with students via Twitter. LinkedIn. Facebook and her blog .

Let s get social


Minimum FHA Credit Score Requirement Falls 60 Points #ny #mortgage #rates


#fha mortgage requirements

#

Minimum FHA Credit Score Requirement Falls 60 Points

Minimum Credit Score For Home Loan

The minimum credit score for a home loan is 500, however, it’s possible to get a mortgage loan with no credit score at all. FHA loans require no credit score; and, VA loans, USDA loans, and conventional loans each require a minimum credit score of 620. Exceptions can be made to minimum credit score policies for borrowers with reasonable cause.

Minimum FHA Credit Score Drops 60 Points

It’s getting easier for borrowers to get an FHA-backed home loan.

Major lenders will now approve FHA mortgage applications for borrowers with FICO scores of 580. It marks a 60-point improvement over 2014, when FHA lenders required 640 FICO scores or better to get approved.

The news comes at a time when FHA loans are in demand.

The program’s 3.5% downpayment minimum is among the most lenient for today’s home buyers; and underwriting requirements on an FHA loan are flexible and forgiving.

FHA loans account for close to one-quarter of all loans closed today.

FHA Loans Allow 3.5% Downpayment

FHA loans are an important component of the U.S. housing and mortgage market.

FHA loans are loans which are insured by the Federal Housing Administration and made available to U.S. buyers and existing homeowners.

The FHA was formed in 1934 and it exists to provide affordable housing to Americans. Today, it’s the largest insurer of mortgage loans worldwide.

The Federal Housing Administration doesn’t actually make loans. Rather, it insures loans made by the nation’s banks, providing protection against default and loss.

In order to gain the FHA’s protection, lenders must only make sure that the loan in question meets the lending standards as set forth by the FHA.

The FHA’s rule book is known as the “FHA guidelines” and it describes all allowable loan traits, as well as the going terms of an Federal Housing Administration-backed loan.

For example, FHA guidelines state that home buyers must make a minimum downpayment of 3.5 percent against a home’s purchase price; and that buyers can be cleared to buy a home 12 months after a bankruptcy, short sale, or foreclosure .

Guidelines also place limits on the size of an FHA-backed loan, which varies by county.

FHA loan limits range from $271,200 for a single-family home to $1,202,925 for a 4-unit home.

Fewer FHA “Investor Overlays” Means More Approvals

FHA mortgage guidelines define which loans the Federal Housing Administration will, and will not, insure. However, U.S. lenders don’t underwrite loans to the FHA guidelines as they’re written, to the letter.

Lenders impose additional restrictions known as investor overlays which make it harder for an applicant to qualified for an FHA-backed loan.

One such overlay is linked to the FHA Streamline Refinance.

According to the official FHA guidelines, with an FHA Streamline Refinance. lenders are not required to verify income, employment or credit scores. Yet, many lenders choose to verify regardless.

This is because the FHA penalizes banks for making too many “bad loans” and verifications can cut down on defaults.

Another important overlay is linked to your credit score.

The FHA rules state that it will insure home loans for which the borrower has a credit score of 500 or higher. Banks, however, are reluctant to make such loans.

Buyers with credit scores of 500 are highly likely to default in the next 6 months, which would negatively affect a bank’s FHA default rate, leading to fines, penalties, and perhaps, termination from the FHA insurance program.

Beginning in late-2011, most banks enforced a minimum credit score for FHA loans of 640. That minimum score has since been lowered.

U.S. home buyers can now get an FHA loan with credit scores of just 580.

Furthermore, with the domestic economy improving and U.S. housing expanding, it’s not unexpected that minimum FHA FICOs would drop again soon.

What Are Today’s Mortgage Rates?

For today’s U.S. home buyers, the Federal Housing Administration mortgage is among the most lenient and forgiving mortgage programs available. Find out whether you’re FHA-eligible.

Get today’s live mortgage rates now. Your social security number is not required to get started, and all quotes come with access to your live mortgage credit scores.

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.


Minimum FHA Credit Score Requirement Falls 60 Points #2nd #mortgage #rates


#fha mortgage requirements

#

Minimum FHA Credit Score Requirement Falls 60 Points

Minimum Credit Score For Home Loan

The minimum credit score for a home loan is 500, however, it’s possible to get a mortgage loan with no credit score at all. FHA loans require no credit score; and, VA loans, USDA loans, and conventional loans each require a minimum credit score of 620. Exceptions can be made to minimum credit score policies for borrowers with reasonable cause.

Minimum FHA Credit Score Drops 60 Points

It’s getting easier for borrowers to get an FHA-backed home loan.

Major lenders will now approve FHA mortgage applications for borrowers with FICO scores of 580. It marks a 60-point improvement over 2014, when FHA lenders required 640 FICO scores or better to get approved.

The news comes at a time when FHA loans are in demand.

The program’s 3.5% downpayment minimum is among the most lenient for today’s home buyers; and underwriting requirements on an FHA loan are flexible and forgiving.

FHA loans account for close to one-quarter of all loans closed today.

FHA Loans Allow 3.5% Downpayment

FHA loans are an important component of the U.S. housing and mortgage market.

FHA loans are loans which are insured by the Federal Housing Administration and made available to U.S. buyers and existing homeowners.

The FHA was formed in 1934 and it exists to provide affordable housing to Americans. Today, it’s the largest insurer of mortgage loans worldwide.

The Federal Housing Administration doesn’t actually make loans. Rather, it insures loans made by the nation’s banks, providing protection against default and loss.

In order to gain the FHA’s protection, lenders must only make sure that the loan in question meets the lending standards as set forth by the FHA.

The FHA’s rule book is known as the “FHA guidelines” and it describes all allowable loan traits, as well as the going terms of an Federal Housing Administration-backed loan.

For example, FHA guidelines state that home buyers must make a minimum downpayment of 3.5 percent against a home’s purchase price; and that buyers can be cleared to buy a home 12 months after a bankruptcy, short sale, or foreclosure .

Guidelines also place limits on the size of an FHA-backed loan, which varies by county.

FHA loan limits range from $271,200 for a single-family home to $1,202,925 for a 4-unit home.

Fewer FHA “Investor Overlays” Means More Approvals

FHA mortgage guidelines define which loans the Federal Housing Administration will, and will not, insure. However, U.S. lenders don’t underwrite loans to the FHA guidelines as they’re written, to the letter.

Lenders impose additional restrictions known as investor overlays which make it harder for an applicant to qualified for an FHA-backed loan.

One such overlay is linked to the FHA Streamline Refinance.

According to the official FHA guidelines, with an FHA Streamline Refinance. lenders are not required to verify income, employment or credit scores. Yet, many lenders choose to verify regardless.

This is because the FHA penalizes banks for making too many “bad loans” and verifications can cut down on defaults.

Another important overlay is linked to your credit score.

The FHA rules state that it will insure home loans for which the borrower has a credit score of 500 or higher. Banks, however, are reluctant to make such loans.

Buyers with credit scores of 500 are highly likely to default in the next 6 months, which would negatively affect a bank’s FHA default rate, leading to fines, penalties, and perhaps, termination from the FHA insurance program.

Beginning in late-2011, most banks enforced a minimum credit score for FHA loans of 640. That minimum score has since been lowered.

U.S. home buyers can now get an FHA loan with credit scores of just 580.

Furthermore, with the domestic economy improving and U.S. housing expanding, it’s not unexpected that minimum FHA FICOs would drop again soon.

What Are Today’s Mortgage Rates?

For today’s U.S. home buyers, the Federal Housing Administration mortgage is among the most lenient and forgiving mortgage programs available. Find out whether you’re FHA-eligible.

Get today’s live mortgage rates now. Your social security number is not required to get started, and all quotes come with access to your live mortgage credit scores.

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.


Minimum FHA Credit Score Requirement Falls 60 Points #national #mortgage #news


#fha mortgage requirements

#

Minimum FHA Credit Score Requirement Falls 60 Points

Minimum Credit Score For Home Loan

The minimum credit score for a home loan is 500, however, it’s possible to get a mortgage loan with no credit score at all. FHA loans require no credit score; and, VA loans, USDA loans, and conventional loans each require a minimum credit score of 620. Exceptions can be made to minimum credit score policies for borrowers with reasonable cause.

Minimum FHA Credit Score Drops 60 Points

It’s getting easier for borrowers to get an FHA-backed home loan.

Major lenders will now approve FHA mortgage applications for borrowers with FICO scores of 580. It marks a 60-point improvement over 2014, when FHA lenders required 640 FICO scores or better to get approved.

The news comes at a time when FHA loans are in demand.

The program’s 3.5% downpayment minimum is among the most lenient for today’s home buyers; and underwriting requirements on an FHA loan are flexible and forgiving.

FHA loans account for close to one-quarter of all loans closed today.

FHA Loans Allow 3.5% Downpayment

FHA loans are an important component of the U.S. housing and mortgage market.

FHA loans are loans which are insured by the Federal Housing Administration and made available to U.S. buyers and existing homeowners.

The FHA was formed in 1934 and it exists to provide affordable housing to Americans. Today, it’s the largest insurer of mortgage loans worldwide.

The Federal Housing Administration doesn’t actually make loans. Rather, it insures loans made by the nation’s banks, providing protection against default and loss.

In order to gain the FHA’s protection, lenders must only make sure that the loan in question meets the lending standards as set forth by the FHA.

The FHA’s rule book is known as the “FHA guidelines” and it describes all allowable loan traits, as well as the going terms of an Federal Housing Administration-backed loan.

For example, FHA guidelines state that home buyers must make a minimum downpayment of 3.5 percent against a home’s purchase price; and that buyers can be cleared to buy a home 12 months after a bankruptcy, short sale, or foreclosure .

Guidelines also place limits on the size of an FHA-backed loan, which varies by county.

FHA loan limits range from $271,200 for a single-family home to $1,202,925 for a 4-unit home.

Fewer FHA “Investor Overlays” Means More Approvals

FHA mortgage guidelines define which loans the Federal Housing Administration will, and will not, insure. However, U.S. lenders don’t underwrite loans to the FHA guidelines as they’re written, to the letter.

Lenders impose additional restrictions known as investor overlays which make it harder for an applicant to qualified for an FHA-backed loan.

One such overlay is linked to the FHA Streamline Refinance.

According to the official FHA guidelines, with an FHA Streamline Refinance. lenders are not required to verify income, employment or credit scores. Yet, many lenders choose to verify regardless.

This is because the FHA penalizes banks for making too many “bad loans” and verifications can cut down on defaults.

Another important overlay is linked to your credit score.

The FHA rules state that it will insure home loans for which the borrower has a credit score of 500 or higher. Banks, however, are reluctant to make such loans.

Buyers with credit scores of 500 are highly likely to default in the next 6 months, which would negatively affect a bank’s FHA default rate, leading to fines, penalties, and perhaps, termination from the FHA insurance program.

Beginning in late-2011, most banks enforced a minimum credit score for FHA loans of 640. That minimum score has since been lowered.

U.S. home buyers can now get an FHA loan with credit scores of just 580.

Furthermore, with the domestic economy improving and U.S. housing expanding, it’s not unexpected that minimum FHA FICOs would drop again soon.

What Are Today’s Mortgage Rates?

For today’s U.S. home buyers, the Federal Housing Administration mortgage is among the most lenient and forgiving mortgage programs available. Find out whether you’re FHA-eligible.

Get today’s live mortgage rates now. Your social security number is not required to get started, and all quotes come with access to your live mortgage credit scores.

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.


Minimum FHA Credit Score Requirement Falls 60 Points #mortgage #repayment #calculator


#fha mortgage requirements

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Minimum FHA Credit Score Requirement Falls 60 Points

Minimum Credit Score For Home Loan

The minimum credit score for a home loan is 500, however, it’s possible to get a mortgage loan with no credit score at all. FHA loans require no credit score; and, VA loans, USDA loans, and conventional loans each require a minimum credit score of 620. Exceptions can be made to minimum credit score policies for borrowers with reasonable cause.

Minimum FHA Credit Score Drops 60 Points

It’s getting easier for borrowers to get an FHA-backed home loan.

Major lenders will now approve FHA mortgage applications for borrowers with FICO scores of 580. It marks a 60-point improvement over 2014, when FHA lenders required 640 FICO scores or better to get approved.

The news comes at a time when FHA loans are in demand.

The program’s 3.5% downpayment minimum is among the most lenient for today’s home buyers; and underwriting requirements on an FHA loan are flexible and forgiving.

FHA loans account for close to one-quarter of all loans closed today.

FHA Loans Allow 3.5% Downpayment

FHA loans are an important component of the U.S. housing and mortgage market.

FHA loans are loans which are insured by the Federal Housing Administration and made available to U.S. buyers and existing homeowners.

The FHA was formed in 1934 and it exists to provide affordable housing to Americans. Today, it’s the largest insurer of mortgage loans worldwide.

The Federal Housing Administration doesn’t actually make loans. Rather, it insures loans made by the nation’s banks, providing protection against default and loss.

In order to gain the FHA’s protection, lenders must only make sure that the loan in question meets the lending standards as set forth by the FHA.

The FHA’s rule book is known as the “FHA guidelines” and it describes all allowable loan traits, as well as the going terms of an Federal Housing Administration-backed loan.

For example, FHA guidelines state that home buyers must make a minimum downpayment of 3.5 percent against a home’s purchase price; and that buyers can be cleared to buy a home 12 months after a bankruptcy, short sale, or foreclosure .

Guidelines also place limits on the size of an FHA-backed loan, which varies by county.

FHA loan limits range from $271,200 for a single-family home to $1,202,925 for a 4-unit home.

Fewer FHA “Investor Overlays” Means More Approvals

FHA mortgage guidelines define which loans the Federal Housing Administration will, and will not, insure. However, U.S. lenders don’t underwrite loans to the FHA guidelines as they’re written, to the letter.

Lenders impose additional restrictions known as investor overlays which make it harder for an applicant to qualified for an FHA-backed loan.

One such overlay is linked to the FHA Streamline Refinance.

According to the official FHA guidelines, with an FHA Streamline Refinance. lenders are not required to verify income, employment or credit scores. Yet, many lenders choose to verify regardless.

This is because the FHA penalizes banks for making too many “bad loans” and verifications can cut down on defaults.

Another important overlay is linked to your credit score.

The FHA rules state that it will insure home loans for which the borrower has a credit score of 500 or higher. Banks, however, are reluctant to make such loans.

Buyers with credit scores of 500 are highly likely to default in the next 6 months, which would negatively affect a bank’s FHA default rate, leading to fines, penalties, and perhaps, termination from the FHA insurance program.

Beginning in late-2011, most banks enforced a minimum credit score for FHA loans of 640. That minimum score has since been lowered.

U.S. home buyers can now get an FHA loan with credit scores of just 580.

Furthermore, with the domestic economy improving and U.S. housing expanding, it’s not unexpected that minimum FHA FICOs would drop again soon.

What Are Today’s Mortgage Rates?

For today’s U.S. home buyers, the Federal Housing Administration mortgage is among the most lenient and forgiving mortgage programs available. Find out whether you’re FHA-eligible.

Get today’s live mortgage rates now. Your social security number is not required to get started, and all quotes come with access to your live mortgage credit scores.

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.