How to Qualify for FHA Loan
So how to qualify for FHA Loan? The easiest types of mortgages that a person can possibly qualify for are the FHA loans. The requirement guidelines for this kind of loan are also very flexible and require a down payment of less than 5%. Therefore, if you are looking to buy a home in the near future, you should consider looking in the FHA loans and start preparing for their requirements right away.
Basic Requirements For FHA Loan
- The new mortgage payments should be about 30% of the gross income.
- The loan requires that you have at least two years of a steady employment and the same employer is preferred.
- Your income for the previous two years should be either increasing or the same.
- If you happen to have any foreclosures, they should be three years old at a minimum, and you should attain a great credit score since then.
- The credit report should have a minimum of 620 as the credit score or higher than that, and in some of the cases, there should not be any credit score.
- The bankruptcy charges should be two years old at a minimum.
These constitute the basic requirements of applying and qualifying for a FHA loan. Therefore, if you think that you fulfill all of the above mentioned requirements, then you probably qualify for the loan.
You should remember that your documents are highly important for the approval of your loan. Therefore, if you want your transaction to be smooth, then you will be required to ensure all the necessary documents are gathered with you before you apply for the loan. Following are the documents that you will be requiring:
- Employment Information
- Savings Information
- Credit Information
- Personal Information
- If you Refinance or you own Rental Property
Saving For a Down Payment
Most of the home loans that you apply for will require a down payment which is a percentage of the overall cost of the loan that is paid initially. The benefit of FHA loans is that they have small or low down payments. However, the requirement of making this down payment is still there. Therefore, it is important that you start saving up for this down payment if you have not already in the case that you are looking to obtain a FHA loan.
Are you in need of a mortgage loan because you are considering a home purchase sometime in the near future? Why not start preparing for it right away? The best strategy for purchasing a home is to know what requirements you will have to fulfill way before you even purchase a property. If you happen to have any further questions regarding FHA loans, or would like a little more information on them, then you can easily get in touch with us. We would be more than happy to help you out and answer any of the questions that you might have regarding FHA loans.