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. Sometimes you need to do some prep on the requirements, even though you 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.
There were a few updates made to FHA loan programs for 2022. Changes like the maximum amount that can be borrowed using an FHA loan. This amount varies based on local factors, so it was not an across-the-board increase. The changes mostly affected details on the lender side of the transaction. FHA-approved lenders now have new requirements regarding loan reporting and how they handle the verification of applicants. At the end of the day, this doesn’t affect the borrower’s experience too much. No changes in requirements from previous years 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.
Exploring Loan Programs
If you’re looking at loan programs offered by private companies, there may be changes from previous years you’ll need to consider. 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 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 last year around October or November. If you’re downloading information about the loan program, be sure to download directly from the program’s homepage and select the most current available information if there are multiple documents listed. You don’t want any last-minute 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 homeownership a reality. So can we! Give us a call if you are ready to purchase (or sell) a home.
Photo by Soroush Karimi on Unsplash
