One of the most important things to understand about FHA loans, or Federal Housing Administration loans, is that they include insurance upon approval and payment. This insurance protects the lender if he or she defaults on any payments; insurance may give you the reassurance that you are looking for in your loan amount. FHA loans are wonderful for those that have a limited down payment available and are first time home buyers.
Generally speaking, if you are looking towards an FHA loan your credit score should average around 620 or higher, although reporting one less does not automatically disqualify you from being approved. You may also qualify if you have previously claimed bankruptcy or foreclosure.
FHA loans require you to bring between 3.5% and 4% of the purchase price of the property you desire. They are a great solution for many first time homeowners. FHA has limits set by each individual county for the total mortgage amount available to be given. To find out what the property you are interested in is set at, call me. Together we will determine what total you will need to bring down and if the FHA loan is the right loan for you.
FHA loans have fewer standards when it comes to qualifying in comparison to other alternative loan options. If you are interested in seeing if you could qualify, contact me today. I will work one-on-one with you to help you understand the parameters included in the loan and provide you with all that you need to know before applying.
FHA purchase transactions and regular financing both require specific documents to be qualified. Contact me today to get a list of what you need.