FHA Loans True or False: After Your Loan Has Been Approved
January 27, 2026
What these potential borrowers don't realize is that your home loan isn't "safe" until closing day when you make your closing cost payments, sign the paperwork, and accept the keys to your new home.
True or False: The "Clear to Close" status indicates that the lender has completed all underwriting and is ready to fund the loan.
True. The "clear to close" status indicates the underwriter has verified all conditions and authorized the settlement.
True or False: You can open a new credit card or buy a car after you receive your initial loan approval.
False. Lenders often perform a final credit check before settlement; new debt can change your debt to income ratio and disqualify your loan.
True or False: The FHA appraiser only determines the market value of the home and does not check for safety issues.
False. FHA appraisers must ensure the property meets HUD’s Minimum Property Standards for safety, security, and soundness.
True or False: You must receive the Closing Disclosure at least three business days before you sign the final paperwork.
True. Federal law requires this waiting period to allow you to review the final loan terms and costs.
True or False: The seller must repair hazards like peeling lead-based paint before the FHA loan can fund.
True. The property must satisfy all safety requirements identified in the appraisal before the lender releases the funds.
True or False: You can pay your "Cash to Close" using a personal check on the day of settlement.
False. Lenders and title companies generally require a wire transfer or a cashier’s check for closing funds.
True or False: An FHA escrow account pays for your property taxes and homeowners' insurance on your behalf.
True. The lender collects a portion of your monthly payment and manages these disbursements to protect the investment.
True or False: You should perform a final walk through of the home within 24 hours of closing.
True. This ensures the property condition remains unchanged and the seller completed all required repairs.
FHA Loan Articles
August 19, 2026Homebuyers who have enough cash for a down payment still need to consider their full financial picture before choosing between a conventional mortgage and an FHA loan. Having cash on hand changes the math for both options, but savings alone won't make a conventional loan the automatic winner. Credit scores, current debt, and the type of property you want to buy all determine which loan will cost less over time.
August 11, 2026Homeowners with FHA adjustable-rate loans need to track their loans more closely. That is because FHA ARM loans start with introductory interest rates that eventually expire and are subject to change afterwards based on market rates. When interest rates rise, monthly housing payments climb on ARM loans, pushing many homeowners to consider refinancing into a fixed-rate mortgage.
August 10, 2026If you want to buy a home with an FHA mortgage, you must set up an escrow account to cover property taxes, homeowner insurance, and upfront closing expenses. While the FHA loan program has rules for funding these accounts, buyers often do not realize those rules can include approved and unallowed sources for escrow funds. What do you need to know before you set up and fund your escrow account for an FHA mortgage?
August 3, 2026Buying a home in a high-cost area requires understanding how FHA loan limits shape your financing options. Does the house for sale have a price above the local FHA loan limit? You may need to explore your jumbo loan options. There are conventional jumbo loans and FHA versions. Which is right for you? Much depends on your financial needs, plans, and goals for the loan.
July 30, 2026There is a common misconception about FHA loans that only a first-time home buyer can use the program. This is not true; repeat buyers can qualify for an FHA loan, but why does this misconception exist? Partially because state and local programs have first-time buyer requirements for down payment and/or closing cost assistance programs. So while you do not need to be a first-time buyer to get an FHA loan, you may need to meet that definition to qualify for down payment help.
