How do you buy a house with very little money down?  One way is the FHA loan product.  FHA stands for Federal Housing Administration, which is a program that has been in place since the 1930s. The FHA's goal is to help stimulate the housing market by making home loans accessible and affordable.

Making FHA loans accessible is done by way of the lesser guidelines on ones credit score.  For those interested in applying for an FHA loan, applicants are now required to have a minimum FICO score of 580 to qualify for the low down payment advantage, which is currently at around 3.5 percent.  and employment history, there are a set of standards listed in the FHA loan handbook.  These guidelines and any others in regards to this loan product must be discussed with your lender.  Each lender may required different things and only they will know that.

The FHA product extends into the type of home you can purchase.  Can I Buy A Manufactured Home With An FHA Mortgage?  For starters, It IS possible to buy a mobile home or manufactured home using an FHA mortgage. However; the most important requirement for this must be met...Mobile/manufactured homes do not start off on a permanent foundation, but they must wind up on one as a condition of loan approval.

FHA loan comes with a limit as to how much you can borrow.  The FHA has announced FHA loan limits for 2018, and the new numbers mean good news for those looking to buy a home in the new year. The “national conforming loan limit” for 2018 is set at $453,100, up from last year’s limit of $424,100.  FHA mortgage lending limits in TENNESSEE vary based on a variety of housing types and the cost of local housing. FHA loans are designed for borrowers who are unable to make large down payments.


FHA Appraisal


FHA Loan Appraisal Info

FHA loan appraisal guidelines are different than conventional appraisal guidelines in some aspects.  There are many factors to remember about the FHA appraisal process, and not all of them have to do with the act of doing the appraisal; borrowers need to know how the appraisal fits into the overall process of applying for an FHA loan and getting loan approval.

 Here are some examples of what an appraisal will be checking for:

  • Inspect the property’s interior and exterior structure and quality
  • Ensure lead-based paint is not present
  • Check for cracks, leaks, and damage to the exterior Walls and ceilings in good condition without cracks or holes
  • Check quality of fixtures, plumbing, and appliances
  • Make note of any upgrades that may increase the value
  • Ensure the Landscape is in good condition
  • Check central heating and cooling systems
  • Take photos of the front, sides and back of the home. Along with photos of any upgrades that increase the homes value
  • Photos showing the condition of the lot
  • Include a copy of the location map showing the comparable sales

Please remember that the appraisal is an independent review of the property for the bank.  A home inspection should always be preformed for a home review for you the buyer.