START YOUR HOME LOAN PROCESS!
What Is a FHA Loan?
FHA loans are backed by the Federal Housing Administration; they protect the lender from financial risk as they allow for a riskier client to purchase or refinance. With higher allowances for debt to income and a lower threshold for credit scores, these loans are ideal for first time home buyers. Down payments can be as low as 3.5% but with all the positives there are some catches; FHA loans require an Upfront Funding Fee but that can be financed into the loan. In addition, there is a monthly mortgage insurance premium and, in some cases, can last the entirety of the loan.
Advantages: Lower credit score requirements, scores can be as low as 500 but will require at least 10% down. 580 and above will require 3.5% down. Allows for higher debt to income ratios. Programs: 203B, 203K (Renovation loan) and Streamlines.
Benefits of a FHA Loan:
Easier to Qualify for:
- Low Down Payment
- Lower Credit Borrowers Qualify
- Better Interest Rates
- Better Home Stability
FHA Loan Checklist
- Past two years completed tax returns.
- Past two years W-2’s, 1099’s and any other necessary tax forms.
- One-month worth of newest pay stubs.
- Self-employed will need two years tax returns and YTD Profit & Loss Statement
- Past two months full bank statements for all accounts.
- Recent statements from investment accounts (retirement, 410k, mutual funds, etc.)
- Driver’s License or other official State identification.
- Any Divorce, Palimony, Alimony or Child Support Documents.
- Green card or work-permit (if applicable)