FHA
Loans
Get Further Information on FHA Loans Below
WHAT ARE FHA LOANS?
FHA Loans are issued by federally qualified lenders certified by the United States Federal Housing Authority. This loan is popular amongst first-time homeowners. FHA allows a borrower to have higher debt ratios, lower down payment, and lower credit scores. Also, the guidelines are generally more lenient to help people get into a home.
FHA LOAN BENEFITS
An FHA loan is a mortgage insured by the Federal Housing Administration. This is most used by first-time buyers who have little savings or credit challenges or people reestablishing their credit or employment. FHA loans are issued by approved banks and lending institutions, who will evaluate your qualifications for the loan. Benefits of FHA loans:
- Lower minimum credit score than conventional loans.
- Down payments as low as 3.5%.
- Debt-to-income ratios as high as 50% allowed.
- No payment reserve requirements.
WHO IS ELIGIBLE FOR AN FHA LOAN?
There are fewer restrictions for FHA Loan qualification. You must prove employment and residency status, have a steady or increasing income for at least 2 years. You cannot have more than two missed payments on your credit. If you filed for bankruptcy you must wait at least 2 years and have good credit since you filed. If you filed for foreclosures, you must wait at least 3 years since the most recent foreclosure. Co-borrowers and gifts are allowed.
WHAT TYPES OF PROPERTY ARE ELIGIBLE?
Most conventional loan programs allow you to purchase single-family homes, warrantable condos, planned unit developments, and 1-4 family residences. A conventional loan can also be used to finance a primary residence, second home and Manufactured homes on a permanent foundation are allowed.
Learn more about FHA Loans here or call Ron.
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