FHA Loans
Federal Housing Administration Loans
If you are a first-time homebuyer with limited cash for a down payment, then an FHA loan might be the right fit for you. Even first-time homebuyers who have suffered from bankruptcy may qualify for an FHA loan. An FHA home loan can be used to buy or refinance Single-Family Homes, 2 – 4 Unit Multi-Family Homes, Condominiums, Manufactured, and Mobile Homes.
The Federal Housing Administration — better known as the FHA, has helped people become homeowners since 1934. FHA loans are insured by the government and backed by the Federal Housing Administration.
FHA borrowers pay for mortgage insurance, which protects the lender from a loss if they default on the loan. The option of a low down payment and more lenient credit requirements can make FHA loans particularly attractive for first-time homebuyers. However, you don’t have to be a first-time homebuyer to qualify.
Addresses
Be prepared to provide 2-year residents history and proof of payment, if applicable.
Proof of Income
- Wage Earner: Be prepared to provide 2-years of employment history through W-2’s and pay stubs.
- Self-Employed: Be prepared to provide 2 years of tax returns.
Debt-To-Income (DTI) Ratio
Your DTI should be within program guidelines. For more information, contact Best Mortgage.Employment Verification
Employment will be verified before closing.Proof of Assets
Discuss minimum downpayment requirements with your Mortgage Broker, accompanied by 2-months of bank statements.Credit Pull
Your Mortgage Broker will ask for your social security number and permission to pull your credit reports.| | Credit score requirements are lower compared to other loans. |
| | The lender can accept a lower down payment. An FHA loan requires a minimum of 3.5% down (96.5% LTV). |
| | You could still qualify for an FHA loan if you have a bankruptcy or other financial issues in your history. |
| | Closing costs can be financed with a Seller’s Concession. |
| | Gifts from family members are allowed. |
| | Lower Interest Rate. |
| | No Appraisal. |
| | No Income Verification. |
| | No Credit Check. |
FHA streamline refinance, a program that allows homeowners with FHA-backed mortgages to refinance with less time, hassle, and paperwork. With a streamlined refinance, you don’t need to go through the FHA appraisal process again since the FHA has already valued the property.
The streamline program is only available to homeowners who already have FHA loans, but that doesn’t mean you have to refinance with your existing lender. FHA loan requirements and fees may vary by lender.
