Why FHA?

· No credit score requirements

· No minimum or maximum income

              requirements

· Lower down payment requirements

· Low closing costs

· Low down payments

· Property condition standards

· Lower monthly mortgage insurance

· Special discounts for certain individuals

 

 

 

 

The Federal Housing Administration was created in 1934 to combat the growing problem of indebtedness and a lack of homeownership. A FHA loan is a mortgage loan that is insured by U.S. government. The government does not loan any money to the lender, but by insuring the loan, lenders are more willing to give out loans with fewer requirements and stipulations.

 

FHA loans were designed to help more Americans find affordable housing and today they are as valuable of a tool as they were then. FHA loans are also great for first-time home buyers and those who have credit problems.

 

 

FHA Mortgage Guidelines

 

FHA insured loans require mortgage insurance to protect lenders against losses that result from defaults on home mortgages.

 

FHA mortgage lending limits vary based on a variety of housing types and the state and county in which the property is located.

 

Before you start the loan process, you'll want to be prepared for the loan application.

 

Have your information organized and ready for your loan officer.

 

While FHA defines which closing costs are allowable as charges to the borrower, the specific costs and amounts that are deemed reasonable and customary are determined by each local FHA office.

 

In order to prevent homebuyers from getting into a home they cannot afford, FHA guidelines have been set in place requiring borrowers and/or their spouse to qualify according to set debt to income ratios.

 

An FHA loan applicant's past credit performance that demonstrates good credit history and a solid track record of timely payments will likely be eligible for the mortgage.