Purchasing a home is a big investment and should be taken seriously. Knowing what the FHA loan requirements are can help you through the lending process and help you to better understand how serious your purchase is. They will vary depending on your state and county but knowing the basics is important.
You will need to know the type of residence you may interested in. You have the option to choose from a single family dwelling, condominium or 2, 3 or 4 unit properties. You cannot purchase large apartment complexes, only a duplex, triplex or quadraplex property.
You have to know the amount that you want to apply for. There are limits to this amount depending on the state and county you live in so you should contact lenders and realtors in your area to discuss these limits.
Sometimes it is difficult to gather the cash needed for a down payment. FHA does not require a large percentage of the purchase price. Coming up with three percent of the price is much easier than the twenty percent that conventional lenders require. Three percent is the most needed with this program.
Your employment will have a bearing on your application too. You should have had steady employment for the past two years. It must include periodic increases during this time and your requested amount cannot exceed thirty percent of your pay before taxes are withheld.
Credit score is important too. You should have a score of 580 to 620 to be approved. Your payment record cannot have more than two 30-day late payments and if you have prior foreclosures or bankruptcies they must have been discharged three and two years prior respectively with perfect credit since discharge.
Each residence must be appraised. The appraiser must be government approved in order for FHA to accept the appraisal. Small issues will not prevent approval but serious ones will have to be repaired before you can be approved. Read more about: fha loan requirements
You will need to know the type of residence you may interested in. You have the option to choose from a single family dwelling, condominium or 2, 3 or 4 unit properties. You cannot purchase large apartment complexes, only a duplex, triplex or quadraplex property.
You have to know the amount that you want to apply for. There are limits to this amount depending on the state and county you live in so you should contact lenders and realtors in your area to discuss these limits.
Sometimes it is difficult to gather the cash needed for a down payment. FHA does not require a large percentage of the purchase price. Coming up with three percent of the price is much easier than the twenty percent that conventional lenders require. Three percent is the most needed with this program.
Your employment will have a bearing on your application too. You should have had steady employment for the past two years. It must include periodic increases during this time and your requested amount cannot exceed thirty percent of your pay before taxes are withheld.
Credit score is important too. You should have a score of 580 to 620 to be approved. Your payment record cannot have more than two 30-day late payments and if you have prior foreclosures or bankruptcies they must have been discharged three and two years prior respectively with perfect credit since discharge.
Each residence must be appraised. The appraiser must be government approved in order for FHA to accept the appraisal. Small issues will not prevent approval but serious ones will have to be repaired before you can be approved. Read more about: fha loan requirements
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