The Federal Housing Administration announced updates last week on modifications to its student loan monthly payment calculations to provide more access to single-family loans. Previously, FHA used 1% of your loan balance to calculate your monthly student loan obligation, without factoring in that many borrowers are on income-based repayment plans. The new FHA policy bases the monthly payment calculated into your debt to income ratio based on your actual payment. For example, if are on an income-based repayment plan and you owe $30,000 total but only pay $175 a month, FHA will use that number for your monthly payment, instead of 1% of $30,000 (or $300 a month). 

     This is great news for creditworthy individuals who don’t qualify for a conventional mortgage. This new adjustment also helps many more first-time homebuyers achieve homeownership. You can read more about the new policy on the Department of Housing & Urban Development her. ...

Money talks if you are a serious buyer. This is why the pre-approval process is highly recommended in the very first stages of your home search. Knowing how much you can afford makes your home process more efficient and gives you a higher negotiating power once you make your first offer. To get a pre-approval letter, you will need several documents. These include proof of income, a credit report, and employment verification.

1.     Proof of Income: You must provide W-2 wage statements from the past two years, and recent pay stubs to show income and the number of your earnings for the current year. If you have any additional income like alimony or bonuses, you will need to provide your lender with these statements. Also, you need to provide tax returns from the past two years.

2.     Proof of Assets: There are several hidden costs of buying a home. If you are using a down payment, paying for closing costs, or requiring Private Mortgage Insur! ...