| tart --> | | | | They may require your rental and mortgage |
| If you are interested in qualifying for a federally insured | | | | repayment history before approving your application. |
| mortgage through the Federal Housing Administration, | | | | The FHA will also consider your debt-to-income ratio in |
| you could qualify for a better mortgage going this | | | | making their determination. |
| route. Here is what you need to know about FHA | | | | The advantage of going though this scrutiny by the |
| mortgage loans. | | | | FHA is that you will have an opportunity to explain any |
| There are a variety of reasons for choosing an FHA | | | | blemishes on your credit records. If you have valid |
| mortgage. If you are a first time homebuyer or an | | | | reasons for your financial difficulties the FHA will |
| individual with less than desirable credit, the Federal | | | | consider your explanations before making a decision. |
| Housing Administration can help you get the financing | | | | You can qualify for FHA assistance as soon as three |
| you need. FHA mortgage loans have different lending | | | | years after having a foreclosure on your record. |
| criteria that allow lenders to provide mortgages at | | | | You will be required to make a down payment on the |
| much lower interest rates. | | | | mortgage; however, this down payment amount can |
| What is a FHA Mortgage? | | | | be as three percent of the loan amount. Your down |
| A common belief is that the Federal Housing | | | | payment can come from a variety of sources: |
| Administration lends money for mortgages; however, | | | | non-profits, government programs, or family members |
| this is not the case, the FHA simply insures the | | | | can provide you with the money for your down |
| mortgage loan. If you qualify for an FHA mortgage | | | | payment. |
| your loan will come from a commercial mortgage | | | | There are limits to the FHA programs. There is a limit |
| lender, and is guaranteed by the government. Because | | | | to the amount you can borrow based on the region of |
| your FHA mortgage is insured by the government you | | | | the country you live. The FHA mortgage may not |
| are less of a risk for mortgage lenders; as a result you | | | | qualify your for enough money, if this is the case you |
| will receive a lower interest rate. | | | | will need to secure a second mortgage for the |
| How to Qualify for FHA Mortgage Loans | | | | property. |
| To qualify for an FHA mortgage loan you must apply | | | | Finally, you will have to purchase FHA insurance on the |
| through the Federal Housing Administration. The FHA | | | | mortgage. This insurance amounts to 1.5% of the |
| will evaluate your credit; the agency requires at least | | | | mortgage amount due at closing and a recurring .5% |
| on year of on-time payments on your credit reports. | | | | due every year. |