FHA loans
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[edit] About FHA loans
The United States Department of Housing and Urban Development is completly focused on the development of urban areas in America, and to have anybody who desires to be a homeowner to become one. They have created programs involving the assistance of, and education of loans and mortgages. Included in this long list of programs and organizations is the Federal Housing Administration, or "FHA". Serving more as an insurance company to lenders rather than lenders themselves, the FHA provides peace-of-mind to lender and borrower. With rates as low as 3% of the house price and some options requiring no money down, a FHA loan is the perfect answer to borrowing questions. The FHA has many opportunities to obtain loans for various reasons such as:
- Purchasing a home,
- Repairing or fixing up a home, or
- Making a home more energy efficient.
These loans are available in all fifty states, from Vermont to California, and Alaska to Florida.
[edit] Qualification
There are fewer restrictions for a FHA loan qualification as opposed to a standard mortgage loan.
The requirements are simple. You will need to have two years of steady employment, not necessarily by the same employer but it is preferred. Your income should be similar or increasing for the past two years. You should have less than two 30 day periods of late payments on your credit reports. If you have declared bankruptcy, then it must be at least two years old and you will have to have good credit since then. Foreclosures will also need to be older than three years and have good credit since then. Mortgage payment should be about 30% of your gross income.
[edit] See Also
- Streamline Refinancing
- FHA 203(k) loan
- FHA 203(b) loan
- VA loan
- FHA Housing Loans at an external source.
[edit] Where to obtain FHA loans
You can obtain FHA loans from a variety of places such as your local bank, or from websites dedicated to FHA loans, such as MortgageLoanPlace.com.
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