Get an FHA Loan Today
What is an FHA Loan?
An FHA loan is insured by the Federal Housing Administration to help homeowners get a loan when they’re unable to qualify for a conventional mortgage. This is helpful for borrowers with poor credit history because the loan requires a lower down payment, reduced closing costs, and less strict lending requirements. Plus if the borrower is unable to pay back the loan, the FHA will help reimburse the lender.
How to Qualify for an FHA Loan
- You should have a credit score of 580 or higher with the ability to put at least 3.5% down. (If your credit score is 500-579, you will have to put down at least 10%).
- The down payment must be from an authorized source, such as a gift, a loan, or from your savings account. The loan cannot be from someone that could benefit from the deal, such as the lender, agent, or seller.
- You must provide documentation of your income to assure the lender that you can afford the mortgage payments. This includes pay stubs, W-2s, etc.
- The property you are purchasing must be your primary residence. You will not be able to get a loan for an investment or a vacation property.
- Make sure you aren’t on the government’s Credit Alert Interactive Verification Reporting System (CAIVRS) list. This list consists of people who owe taxes or have federal debt of any kind. If you do come up on this list, you will have to get cleared before you can qualify for an FHA loan.
- Start saving as much as you can prior to applying for the FHA loan. This will ensure you can at least put down the minimum of 3.5%.
- Determine your monthly mortgage budget so you know how much you can pay every month before you agree to a rate.
- Find an FHA-approved lender. Borrowers must obtain their loan through an FHA-approved lender rather than a regular mortgage lender.
- Work with a trusted professional and compare loan rates. Trusted House Finance can help you find the best loan rates in your area.
FHA Loan Pros vs. Cons
- Pay a lower down payment
- Lower credit requirements
- Interest rates are practical
- It can be pricey compared to other loans
- Mortgage insurance premiums are required
- Loan amount is limited based on your location and property type
Find Out if an FHA Loan is Right for You
Trusted House Finance will work with you to determine if an FHA loan is the right option for you.
Don’t wait any longer to find out if you qualify for an FHA loan.
Contact us today to get started!
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