FHA is the U.S. Federal Housing Administration. The FHA loan is by far the most used loan program in the country. If you are approaching middle age, and if you remember the First Time Home Buyer Program from a while back, that was FHA. These types of loans are ideal for starter families who want to afford their first home.
It is possible to qualify for an FHA loan and get into the perfect home for you with zero down payment.* This means you would qualify for down payment assistance or grants to help. The usual down payment for an FHA loan is 3.5% of your total loan. And I’m here to help you take advantage of all the possibilities this loan, and others, provide.
One reason the FHA loan is desirable for many clients is because the credit qualifications tend to be a bit more flexible than traditional loans. Those who have been turned down for conventional loans, can sometimes qualify for an FHA. There is a lower requirement for the minimum credit score, and you can get your down payment as a grant, or from charitable contributions, or as a gift. This just means that you can obtain the funds you need to close your loan from several different sources if necessary. That’s not always allowed with conventional loans.
FHA also allows for higher debt to income ratios. A conventional loan limits the debt to income ratio to 50%, but an FHA allows you to go up to 56.99% and even higher in some cases. These more relaxed terms help many who wouldn’t qualify for other types of loans, be able to secure a mortgage for the home they want.
Even if you don’t qualify for an FHA loan right away, I can coach you on the steps to take to qualify in the future. Sometimes all it takes is one more deposit into your savings account, or a letter to a credit bureau. Contact me today to learn how an FHA loan could be the solution to helping you get into your dream home.
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*Loan approval and terms are dependent upon borrower’s credit, documented ability to repay, acceptability of collateral property, and IMS underwriting criteria. USDA and VA loan programs allow 100% financing for those who qualify. USDA loans have location restrictions and income limits. For more information on RD loans, including RD eligibility, please visit http://www.rurdev.usda.gov/HSF-About_Guaranteed_Loans.html. VA loans require borrowers to have VA eligibility through Veterans Administration. For more information, please visit www.benefits.va.gov/homeloans.