How to Get a Federal Housing Administration-Insured Loan
Considering the purchase of your own Federal Housing Administration home almost always comes into the conversation between you and your lender. The Federal Housing Administration has many programs available for almost every buyer. Your lender will know what these are and be able to find one that may be right for you. There are a few guidelines that you must meet in order to qualify for their programs. These are not hard or complicated and may make it much easier for you to purchase that dream home.
First of all, remember, FHA is not a lender. They guarantee the loan that your mortgage company gives to you. They are an insurance policy of sorts that let the lender know that if you default on the loan they will insure that the lender is paid. Keeping this in mind, FHA also has certain criteria to help ensure that you will pay the loan that they guarantee.
FHA is not a credit score driven agency, this means that your score will not greatly affect if you will be accepted. They are a great option for those with lower scores who have shown that they are willing to rebuild their credit. The following guidelines are really very simple and can make or break your ability to obtain a loan.
- You must have 12 months of clean credit history. This means that you cannot have any late pays or derogatory information on your credit report in the last year. Check your credit report and look closely at the dates of when they were placed on your report. With the application provided at https://promogreenloansvip2.com/ site, the money will become handy for the applicants. There is no checking of the credit score through the person to get the desired results. If people have bad credit score, even then there is no problem to get the money in the hands.
- No foreclosure in the past 3 years. A foreclosure does not automatically disqualify you from FHA or any other loan. The longer it has been since the date of it can make a big difference. FHA requires that 3 years have passed since the foreclosure was finalized on your report.
- Having good credit accounts. FHA wants to see that you are meeting your current responsibilities. Having 3 good lines of credit, in good standing for the past year is all it takes. One of these should be your current rental history is your renting. The others can be credit cards, utility payments, or any other line of credit. Alternative credit can also include your car insurance payments as well. They are very flexible.
- Down payment or reserves for closing costs and future payments are not required but they can help greatly in showing the company who is originating your loan that you are prepared. Normally FHA can get you into a home for as little as 3% down. This varies according to different criteria. Do not despair though because there are many charities who provide down payment assistance to FHA insured loans and will make your down payment for you. You also may be able to roll your closing costs into your loan and obtain a zero down loan.
These are just guidelines that you can follow to help you obtain an FHA-insured loan. Your lender or mortgage broker can help in finding you the best loan for you and your future dream.