3 Steps To Get Qualified
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Helpful Tips to Understand it Better
FHA loans are making a comeback in today’s real estate world. What’s great about FHA is the fact that first time home buyers can depend on FHA loan programs to buy their first home. Thus, people who are not familiar with this should know all the advantages in having FHA loan especially the ones that are willing to invest in today’s real estate world.
Many consumers today are still in the dark when it comes to the real process behind the FHA loan. Remember, the FHA doesn’t give out loans but instead they protect the lenders. With this program, lenders will have lesser risks and borrowers will have low down payments. Below would be some really helpful tips that can help a potential borrower and homeowners.
In order to qualify for an FHA mortgage, borrowers should be able to qualify for these things below.
- Steady consistent income is a must if you are planning to take out a FHA mortgage.
- You need to have a good credit history for the last two years.
- A steady employment record, preferably with the same employer for at least 2 years.
- Didn’t file any bankruptcy, or experienced bankruptcy.
- Keeping the mortgage payment below 30% of your income.
However, keep in mind that not all lenders out there today honor FHA loans. Before you consider in applying for a mortgage loan, check if the lender accepts FHA loans. On a side note, the lender should also be FHA-approved. What’s great about this government guaranteed loan is the fact that FHA loan rates are typically lower than conventional loans, unless you have serious credit problems.
When you are a home owner and you are considering buyers that are backed by FHA programs then you should put these few things in mind.
- Lesser risks on buyers that are FHA-guaranteed
- FHA backed loans are usually backed up with a $475,000 cap.
- FHA backed buyers can easily generate a huge pool of potential qualified buyers.
When it comes to homebuyers, you are safe from financial problems. Since the loan is protected by the government, your property will always be ensured and that you will get your money back if anything happens, courtesy of the FHA program