FHA Loans
Aug 27th, 2008
If you are interested in qualifying for a federally insured mortgage through the Federal Housing Administration, you could qualify for a better mortgage going this route. Here is what you need to know about FHA mortgage loans.
There are a variety of reasons for choosing an FHA mortgage. If you are a first time homebuyer or an individual with less than desirable credit, the Federal Housing Administration can help you get the financing you need. FHA mortgage loans have different lending criteria that allow lenders to provide mortgages at much lower interest rates.
What is FHA 203k ?
FHA 203k loan enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage – or to finance the rehabilitation of their existing home.
To qualify for an FHA you must apply through the Federal Housing Administration. The FHA will evaluate your credit; the agency requires at least on year of on-time payments on your credit reports. They may require your rental and mortgage repayment history before approving your application. The FHA will also consider your debt-to-income ratio in making their determination.
The best way to qualify for an FHA loan is to use a consulting agency service. The agency would provide you a FHA mortgage info so you can get your best mortgage.
There are FHA loan limits to the programs. There is a limit to the amount you can borrow based on the region of the country you live. The FHA mortgage may not qualify your for enough money, if this is the case you will need to secure a second mortgage for the property.
Finally, you will have to purchase FHA insurance on the mortgage. This insurance amounts to 1.5% of the mortgage amount due at closing and a recurring .5% due every year. This insurance can be financed and include in your monthly mortgage payment.