FHA Home Loans And Its Basic Requirements To Qualify!
Category : FHA Home Loans
If you are looking for a mortgage program which offers low down payments along with reduced closing costs, Federal Housing Administration (FHA) home loans would be the best option for you. The FHA is a part of the U.S. Department of Housing and Urban Development (HUD) which works with FHA approved lenders by ensuring qualified borrower’s loan. The FHA insures millions of mortgages for single family and multi-family homes. Lenders are insured by the FHA against losses as a result of a homeowner defaulting on their mortgage loan. An FHA insured loan allows the lender to offer lower down payments, less closing costs, and easier credit qualifications. However, the borrower must first qualify for a Federal Housing Administration loan based on certain requirements.
FHA loans are designed to help potential buyers get into their first homes. If you have never purchased a home before, the Federal Housing Administration(FHA) offers down payments of 3.5% of the purchase price. If you are looking to buy a home that is not in the best condition, the FHA can help. FHA allows home buyers to bundle the costs of fixing up a home into their loan. For homeowners who would like to remodel their house, an FHA refinance will allow them to roll the costs into their loan.
Seniors over 62 years old are eligible for an FHA reverse mortgage if their home is paid off or has a low remaining balance. This loan pulls equity from the home but can be used as financial aid for senior living expenses or for recreational purposes. Also, FHA loans are available for borrowers who would like to place a manufactured home on their property.
FHA Loan Requirements:
Here are some basic requirements to qualify for FHA loans:
- Credit Report
- Income Proofs
- Debt to Income Ratio
- Mortgage Insurance
- Loan Amount Limits
- Property Appraisal
- Closing Costs
Each requirement has different exceptions and FHA loan requirements often change. To keep up with the most current requirements, you are advised to speak with an approved lender.
Conclusion:
FHA Home Loans are great for any buyer who can qualify for the government program. To find out you are eligible for FHA Loans or not, you need to work with an FHA lender who is approved by the Federal Housing Administration.
FHA-approved lenders can assist you in receiving the right loan for your needs. If you would like to know more information about FHA loans, please feel free to Call Us on (310) 734 4044 today or Email at info@magnaloans.com.