The dream of home ownership is one that is 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 home owners to be need a little bit of assistance in keeping the loan requirements manageable even if they are able to afford the loan itself. Fortunately, there are a number of home loan programs that can make home ownership attainable even for first time buyers and those that worry about meeting all of the requirements for a traditional mortgage loan.
It is important to know the rules and requirements for these loan programs are updated from time to time. Before starting to look for the home of your dreams, make sure 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 common 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, updates were made to FHA programs. These include 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, 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 these don’t have much impact on the borrower’s experience. Requirements such as 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 as previous years.
Exploring Loan Programs
If you are looking at loans that are offered by private companies rather than the FHA, there may be a few changes from previous years. Many of these programs fall largely in line with the requirements of the 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 may be considering. Fortunately, finding updates about the requirements and functions of these programs isn’t difficult as long as you know what you’re looking for.
Most updates for loan programs are released in the fall so check for any announcements that were made around October or November. If you are downloading program information, make sure to download directly from the program’s homepage and select the latest available version if there are multiple documents listed. By taking the time to find the latest information about the loan program, 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 a reality. And when it comes time to actually move into your home, we are here to help. We can connect you with lenders that can explain loan programs that would be best for your situation as well as other resources to help you with your new home when the time comes. Please reach out so we can be of service to you. We are here to be your real estate resource for life.