If you're purchasing a home for the first time, chances are you've heard of a Federal Housing Authority (FHA) loan, or have been advised to apply for one. The criteria for these loans are usually suitable for most people and families, and the down payment for FHA loans is considerably low, which means that most first-time home owners can afford the loan. But how do you know which type of FHA loan is right for you, or what the qualifications are specifically in your state or city? Here are some pointers for finding an FHA loan, and how to find out if you qualify.
First of all, it's important to understand that the FHA does not actually provide the loans. The loan company that approves you is insured by the FHA, so should the loan go into default for any reason, the loan company can recover their funds.
When you're looking to qualify for the loan, you have to make sure that you have at least a 575 credit score, and that all of your accounts have been paid off before applying for the loan. You'll also have to have good employment history—two years at your current job or two years in the same line of work is usually what most lenders are looking for, to ensure that you will have income coming in on a regular basis to make your loan payments.
You should also make sure that you have a sufficient down payment for your FHA loan at the time of closing. Your down payment will usually be about 2 or 3 percent of the value of the home, but there are a few FHA loans that offer first-time home owners zero down on loans. Be sure to talk to your real estate agent in detail about the right FHA loan for you as soon as you make the decision to own a home.
RSS
If you're purchasing a home for the first time, chances are you've heard of a Federal Housing Authority (FHA) loan, or have been advised to apply for one. The criteria for these loans are usually suitable for most people and families, and the down payment for FHA loans is considerably low, which means that most first-time home owners can afford the loan. But how do you know which type of FHA loan is right for you, or what the qualifications are specifically in your state or city? Here are some pointers for finding an FHA loan, and how to find out if you qualify.
First of all, it's important to understand that the FHA does not actually provide the loans. The loan company that approves you is insured by the FHA, so should the loan go into default for any reason, the loan company can recover their funds.
When you're looking to qualify for the loan, you have to make sure that you have at least a 575 credit score, and that all of your accounts have been paid off before applying for the loan. You'll also have to have good employment history—two years at your current job or two years in the same line of work is usually what most lenders are looking for, to ensure that you will have income coming in on a regular basis to make your loan payments.
You should also make sure that you have a sufficient down payment for your FHA loan at the time of closing. Your down payment will usually be about 2 or 3 percent of the value of the home, but there are a few FHA loans that offer first-time home owners zero down on loans. Be sure to talk to your real estate agent in detail about the right FHA loan for you as soon as you make the decision to own a home.