Federal Housing Administration Loans are commonly known as FHA Loans. These loans provide a low down payment option for home buyers who are looking to purchase a property. The program is made possible by the Federal Housing Administration Department which is an organization under the US Department of Housing and Urban Development (HUD). If you are struggling to get a home loan and have been rejected many times due to various reasons, an FHA Loan would be the perfect choice for you. FHA loan qualifications and guidelines are flexible and are not solely based on having a high credit score.
Are You Eligible for an FHA Loan?
Unlike most of the other home loans, FHA Loan requirements are forgiving in terms of the two most important factors in qualifying for a loan, credit score and low down payment. The basic objective of an FHA home loan is to give every US citizen a chance to be a home owner. No matter how bad your credit history is, you may still qualify. Even if you have lost a home to foreclosure or have previously filed for bankruptcy you still might be a perfect fit for an FHA loan. In addition FHA loan down payment is relatively low which currently stands at 3.5%. The FHA loan limits also differ from state to state.
FHA Loan Guidelines and Requirement
Regardless of their flexibility, FHA loans do possess certain guidelines and requirements which have been shortlisted below for you:
- A valid social security number, legal age to sign a mortgage, residential addresses during the past two years will be checked
- It is required to be employed by a single employer for the past two years
- You must be able to pay the 3.5% down payment
- A property appraisal form a certified FHA appraiser is a must
- Your debt ratio should be below 50%
- If you have filed for bankruptcy, a minimum of 2 years must have passed since discharge, and in most cases credit must be re-established.
- If you have a foreclosure or short sale in your past, the FHA back to work program can help
Above are just a few general guidelines and requirements to keep in mind before applying for the loan. However, the flexibility of an FHA loan makes it hard to know if you qualify unless you apply. Our loan agents are experienced loan officers in the country, we will search for the best solution to make you qualified for a FHA home loan even if you do not possess some of the requirements. For more information on FHA home loans and to check your eligibility, call our agent immediately.
We keep our door open to make your dream home come true with an affordable FHA loan.