2 years, 1 month ago
How to qualify for a FHA loan?
How does one qualify for an FHA mortgage? Can your credit have blemishes? What do they take into consideration? Please cite reliable sources. Thanks!
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M$2 Answers
FHA loan requirements:: Before you can get an FHA backed loan, you have to prove that you can pay it back and you have to be able to pay your present bills while you repay the loan. You can go to your bank or a Realtor and ask about FHA loans and the loan process. The application fee which will vary when you go to apply for a loan.
You will need:
1. Social Security Number of all names on the application.
2. A list of your residences for the past two years.
3. State issued identification for all names on the FHA loan application.
4. Proof of income and/or current pay stubs from your business or your job.
5. Tax records from the previous two years.
6. A list of your debts - all of the businesses you owe monthly payments to.
7. Bank records which include your savings account and checking account statements and other bank account information.
8. Proof of income from the past two years
*The blemishes on your credit report will not disqualify you for a loan, but it may lower the amount that you are allowed to borrow.
*You will need to have enough money for up to 10 percent of the down payment and proof that you have it. The current down payment amount is 0-3 percent. There were rumors that the amount would rise to 10 percent, starting in April, 2010.
*Pay off as many debts as you can before you apply for the loan, while you are also saving money for the down-payment, homeowners insurance and the closing costs. Too many debts will make you appear as a risk. Stop using your credit cards for a while and use your debit card, to help lower your debts.
*Put this saved money in a separate bank account to show to the lender as proof that you have your share of the money needed to get the home.
You can go to any lender to apply for an FHA loan, but there are predatory lenders you have to watch out for. These predatory lenders will ask you to lie on the application or omit important information that help to determine your capabilities to repay the loan. After you have been approved, (through a predatory lender), the interest rates of the loan will make it almost impossible to repay the loan, your credit will be ruined, you will soon face foreclosure - you will lose everything.
To get the best lender, talk to someone you know who bought a home, more than 2 years ago and ask them about their lender.
1. You should have two years of steady employment with same employer, with income that is the same or steadily increasing.
3. Your credit report should not show more than two late fees in last two years. Your minimum credit score should not be lower than 620 points.
4. Any bankruptcy should be two years old or older, with no other blemishes on your credit since that time.
5. If you have filed for foreclosure, it must be at least three years old, with no other blemishes on your credit since that time.
6. Your new mortgage payment should be no more that 30% of your untaxed income.
You may be able to get down-payment assistance through a no-money-down program. http://www.fha-home-loans.com/down_payment_assistance_programs_fha_loans.htm
You will need:
1. Social Security Number of all names on the application.
2. A list of your residences for the past two years.
3. State issued identification for all names on the FHA loan application.
4. Proof of income and/or current pay stubs from your business or your job.
5. Tax records from the previous two years.
6. A list of your debts - all of the businesses you owe monthly payments to.
7. Bank records which include your savings account and checking account statements and other bank account information.
8. Proof of income from the past two years
*The blemishes on your credit report will not disqualify you for a loan, but it may lower the amount that you are allowed to borrow.
*You will need to have enough money for up to 10 percent of the down payment and proof that you have it. The current down payment amount is 0-3 percent. There were rumors that the amount would rise to 10 percent, starting in April, 2010.
*Pay off as many debts as you can before you apply for the loan, while you are also saving money for the down-payment, homeowners insurance and the closing costs. Too many debts will make you appear as a risk. Stop using your credit cards for a while and use your debit card, to help lower your debts.
*Put this saved money in a separate bank account to show to the lender as proof that you have your share of the money needed to get the home.
You can go to any lender to apply for an FHA loan, but there are predatory lenders you have to watch out for. These predatory lenders will ask you to lie on the application or omit important information that help to determine your capabilities to repay the loan. After you have been approved, (through a predatory lender), the interest rates of the loan will make it almost impossible to repay the loan, your credit will be ruined, you will soon face foreclosure - you will lose everything.
To get the best lender, talk to someone you know who bought a home, more than 2 years ago and ask them about their lender.
1. You should have two years of steady employment with same employer, with income that is the same or steadily increasing.
3. Your credit report should not show more than two late fees in last two years. Your minimum credit score should not be lower than 620 points.
4. Any bankruptcy should be two years old or older, with no other blemishes on your credit since that time.
5. If you have filed for foreclosure, it must be at least three years old, with no other blemishes on your credit since that time.
6. Your new mortgage payment should be no more that 30% of your untaxed income.
You may be able to get down-payment assistance through a no-money-down program. http://www.fha-home-loans.com/down_payment_assistance_programs_fha_loans.htm
source(s):
http://www.mahalo.com/how-to-get-an-fha-loan
Down-payment assistance - http://www.fha-home-loans.com/down_payment_assistance_programs_fha_loans.ht...
http://www.fha-home-loans.com/loan_qualifying_fha_loans.htm
Loan comparison - http://www.fha-home-loans.com/fha_loan_comparison.htm
FHA loan increase - http://www.bankrate.com/finance/mortgages/fha-loan-costs-to-increase.aspx
Different types of FHA loans - http://www.fha.com/adjustable_rate.cfm
http://www.mahalo.com/how-to-get-an-fha-loan
Down-payment assistance - http://www.fha-home-loans.com/down_payment_assistance_programs_fha_loans.ht...
http://www.fha-home-loans.com/loan_qualifying_fha_loans.htm
Loan comparison - http://www.fha-home-loans.com/fha_loan_comparison.htm
FHA loan increase - http://www.bankrate.com/finance/mortgages/fha-loan-costs-to-increase.aspx
Different types of FHA loans - http://www.fha.com/adjustable_rate.cfm
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M$Report Abuse
In order to qualify for a FHA loan you must have:
Two Years of steady employment, preferably with same employer.
Last two years Income should be the same or increasing.
Credit report should typically have less than two thirty day lates in last two years with a minimum credit score of 620 or higher or in some cases no credit score at all.
Bankruptcy's must be at least two years old, with perfect credit since discharge.
Foreclosure's must be at least three years old, with perfect credit since.
Your new mortgage payment should be approximately 30% of your gross (before taxes) income.
Two Years of steady employment, preferably with same employer.
Last two years Income should be the same or increasing.
Credit report should typically have less than two thirty day lates in last two years with a minimum credit score of 620 or higher or in some cases no credit score at all.
Bankruptcy's must be at least two years old, with perfect credit since discharge.
Foreclosure's must be at least three years old, with perfect credit since.
Your new mortgage payment should be approximately 30% of your gross (before taxes) income.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
