What does the FHA look for when financing a home

FHA Loan Requirements And Minimum Property Standards for Lending

FHA loans are insured home loans backed by the federal government that requires minimal down payments. Find out if a Federal Housing Administration (FHA) loan is right for you and learn about the FHA's minimum property standards for lending on residential real estate.

How Does the Federal Housing Administration (FHA) Decide Whether or Not to Lend on a Home

At least in Washington State, a home inspection is NOT legally required to be accepted and approved for an FHA home loan. The home’s valuation or appraisal is the service that is legally required to be completed before the Federal Housing Administration will lend on a property.

FHA Loan Requirements And Minimum Property Standards for Lending -

This, however, is not to say that hiring a good home inspector can’t increase the likelihood of the FHA approving your home loan for a particular property. In fact, hiring a qualified home inspector with experience in real estate transactions dealing with the FHA can help to greatly increase your odds of being approved for your FHA financing!

But, before we get to the benefits of hiring an experienced, certified home inspector to help with FHA loan approval, how can we know if the Federal Housing Administration will approve a property for lending or not? Given that home inspection’s themselves are not “pass or fail”, how can the FHA decidedly pass or fail a home for financing?

FHA Lending Requirements: Property Assessment and Minimum Financial & Property Standards for Lending

Learn About How the FHA Assesses a Property and the Requirements for Obtaining an FHA Loan

Not everyone is approved for their FHA loan request or application. Even though assessment of a property is going to be subjective to a large extent, there are certain “red flags” that an FHA Assessor or Lending Officer is always looking for.

If you knew what all of those items were don’t you think it would be much easier to know whether or not the home you found will pass approval for lending by the FHA? What about you personally? Do you know what your credit profile should look like in order to be approved by the FHA for lending?

If you knew exactly what the FHA looks for in terms of financing ability or potential, don’t you believe it might be much more simple to approach an opportunity with the FHA only after you have gotten your finances in order?

4 Tips to Find the Best FHA Loan Lender

  1. Shop multiple FHA loan providers. Each carrier offers varying prices and also loan attributes, making it crucial to compare several options.
  2. Understand your credit profile and history. You’ll require a 580 or higher credit rating to get a minimum down payment of 3.5 percent with the FHA.
  3. Comprehend how closing costs work. Contrast these fees with those of the loan provider and see if you qualify for payment help.
  4. Know your APR. Learn about more than just the interest rate—record APRs from multiple lending institutions to discover the best deal.

These four suggestions will help you find an FHA mortgage lending institution that’s right for you.

Are There FHA Mortgage Limits

What is the Maximum Loan Amount Available from the FHA?

The Federal Housing Administration (FHA) determines forward mortgage limits based on the median residence rates based on the National Housing Act.

FHA’s Single Family forward mortgage limits are established by Metropolitan Statistical Area (MSA) and county and are published regularly.

FHA releases updated limits effective for each calendar year. The FHA establishes these restrictions at or between the low-cost area and high-cost location restrictions based upon the average house costs for the location in question.

Use the button below to use the Department of Urban Housing’s Mortgage Limit Tool to discover your FHA mortgage limits now!

How Will Hiring the Right Home Inspector Help With my FHA Loan Approval

If you read through the standards and conditions above for what the Federal Housing Administration looks at when making a financing determination on a property, you can see that they are all mostly items that are included in a home inspection with SPS Inspections!

When you hire SPS Inspections to perform your inspection for a property you are attempting to get approved for FHA financing on, we are able to provide the Lender/ FHA with almost all of the information they are looking for or concerned about within a home that is up for financing.

As long as there are no glaring issues with a direct impact on the resident’s safety, a completed home inspection report from your local home inspection professional can go a long way in helping the lender to make a positive decision regarding financing the property!