FHA First Time Home Buyer Loan - The FHA Can Possibly Help First Time Home Buyers

FHA First Time Home Buyer Loan - The FHA Can Possibly Help First Time Home Buyers
By Brian I Park

If you have a bit of money or even no money at all for a deposit, risky credit and a lot of bills, the FHA mortgage could help you purchase your dream home.

The FHA or Federal Housing Administration, a vital part of the Housing and Urban Development, was founded 70 years ago to help FHA first time home buyer, particularly those individuals with low to middle income and minorities, obtain home mortgage they require.

The amount that you can have access to and the FHA will concur, has been significantly increased, letting more borrowers to benefit from these loans.

The new maximum value ranges from $271,050 for single family in not expensive locations to $729,750 in costly cities like San Francisco and New York. The maximum amounts are resolute by estimating 115% of a location's middle home price.

That is consider a big improvement than that of the old limits which amounted to $200,160 to $362,790- a limitation that made the FHA mortgage insufficient all the way through the areas of California and parts of the Northeast.

As a first time buyer from FHA you might ask what you can benefit from them. Here's a quick answer to this:

Benefit #1 - You are not required to provide a huge deposit and the lender get help you searching for it.

The FHA will ask from you to deposit at least 3%. Therefore that will cost to about $30 for every $1000 that you intend to borrow.

If you don't have the amount, it will never be a problem. If can be a donation from your friends, a relative or an association that give financial aid.

The FHA is known to work with the local state programs that extend their help through deposit, closing costs and low interest rate mortgage. Your lender should be more willing to explain how these function.

Benefit #2- Your credit score does not have to be too ideal.

You credit rating is not really that important as the FHA do not make use of it to know if you qualify for a loan or not.

There are over 22 factors that go with computing your credit rating which includes how much credit you have, how much credit you normally utilize and how you apply for a credit. The FHA is not really concern on that issue when it comes to identifying whether you will get the mortgage or not.

Benefit #3- You can still acquire more debts.
The ratio of your debt-to-income can be significantly higher for a FHA mortgage that that of the traditional mortgage. And even the FHA boundaries have been extended to provide home ownership to a lot of individuals.

To know where you must stand, calculate your entire mortgage payments such as hazard insurance, interest, taxes, principal and mortgage insurance to your regular monthly responsibilities like auto loans, credit card debts, child support, and student loans. Then divide the total by the amount of your monthly gross income.

You can be eligible for the FHA mortgage even if it's your first time to purchase a home provided that your monthly debt disbursements do not exceed 43% of your revenue.

For more information on FHA Loan Guidelines

Visit 'New FHA Loan Requirements' at http://www.newfhaloanrequirements.com

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FHA Loan Requirements - Here's What You Need to Do to Qualify For an FHA Home Loan

HA Loan Requirements - Here's What You Need to Do to Qualify For an FHA Home Loan

FHA Loan Requirements - Here's What You Need to Do to Qualify For an FHA Home Loan
By Joe Stevens

If you have been trying to get a home loan with a traditional mortgage and have been unable to do so, you will want to look at applying for an FHA home loan. The requirements are not as strict and you need less money for a down payment. While these are probably the most important issues for you, there are a set of guidelines that must be followed to qualify. This article will give you the basic requirements. The actual lender may have some additional qualifications that they want to see.

The home that you are purchasing must be for your personal use. Acquiring a loan for an investment property is not allowed. When you are applying for the FHA loan you will be required to produce a social security number that is valid. This type of loan is specifically for homeowners, to help people achieve the dream of living in their own home.

You will be eligible for an FHA loan if you are a legal resident of the United States. There is no stipulation that you have to be a citizen of the United States, just that you are living in the country lawfully. If you are not of legal age to sign a contract such as a mortgage you will be denied the loan.

Not every bank or lending institution can offer FHA loans. You will need to find one that is qualified to do so. Once you have done that you can expect to provide the following information: income verification, your assets, credit history and the liabilities you have. Your FICO score will be attained for the purpose of the loan, but it is not as critical to achieving success.

There are no income limits that would stop you from getting an FHA loan. However, you must show that you are able to pay the monthly mortgage payments. This is why the proof of your income is needed.

While the FHA lender does look at FICO scores they do not have to be a high as a traditional loan requires. The laws recently changed with regard to the score needed. The typical score they would like to see is 620 plus, but considerations can be made if you have had a good past payment history.

If you have had a bankruptcy in your past, then you must wait at least a year before applying for an FHA loan. It is considerably longer if you try for a traditional 30 year fixed loan.

Many first time buyers won't have a credit history either because they are young or have paid cash for everything. This should not deter you from applying. When you have a good rental history, paid your bills promptly and perhaps had a chance to put some savings aside you have an excellent opportunity to get the loan.

This article has described how easy it is to meet the requirements of an FHA loan. All you need to do now is find the lender that you wish to work with and fill out your application.

Wait! - Get All The Facts On FHA Loan Qualification Right Now by Visiting http://www.theloansolution.org or simply click on FHA Loan Qualifications

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Bad Credit FHA Loans - How You Can Still Get a Home Loan With Bad Credit

Bad Credit FHA Loans - How You Can Still Get a Home Loan With Bad Credit

Bad Credit FHA Loans - How You Can Still Get a Home Loan With Bad Credit
By Mark D. Miller

Bad credit does not necessarily ruin your chances to qualify. This is a common misconception that has been erroneously accepted as fact. The FHA will look at other factors to determine if you qualify for bad credit FHA loans.

One Time Factors Can Be Overcome

Common factors the FHA will consider include if you recently had a job loss, serious illness, or transfer of job. These factors indicate that the bad credit may have been caused by one time factors that are not truly indicative of your credit history. Their recognition of these factors can be very helpful for those who have had bad credit due to these type of issues.

The regular process is the loan officer or underwriter will generally review the last two years of your credit history. For any areas where there are signs of bad credit, you will want to illustrate and show the reasons for this bad credit. For example, if it was tied to a job loss, you can show how you had a dramatic reduction in income. The key here is to show the reasons why this bad credit took place through supporting documents and explanations.

Bankruptcy and Foreclosure Can Also Be Overcome With Time

Another thing to remember is that you can even qualify for a bad credit FHA loan if you have had a bankruptcy or foreclosure in the past. However, they will require you to share that some time has passed since the event. For instance, you must show these events have occurred at least 2 years in the past for bankruptcies and 3 years for foreclosures. In addition, you will need pay off before the closing any outstanding collection amounts, judgments or charge-offs.

Proactive Measures Can Be Taken To Improve Your Credit History

If you feel based on your credit history that you cannot show good reasons why you have had some bad credit, we suggest you hold off on applying until you have a shown a more steady record of credit history. Showing them you have built up a good credit history after one year can go a long way towards offsetting previous bad patches and help show the loan officer or underwriter that you are a better credit risk than your full record might suggest. Another good idea is to pay down and/or close one or two credit cards. Reducing the amount of credit cards can help increase your credit score. Finally, if there are any errors in your credit report, challenge those errors in writing and have them resolved prior to applying for a bad credit FHA loan.

As you can see, bad credit is something that can be worked around in a number of ways to give you a better opportunity to qualify. Bad credit FHA loans have helped many people get their share of the American dream.

For more information on Bad Credit FHA Loans, visit the previous link or http://www.homeloansandrefinancing.com to get some solid tips and information on various home loans and refinancing options.

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Bad Credit want a Home Loan? Find out how to get a FHA-insured Home Loan.

Even with a Bad Credit History, Bankruptcy or Foreclosure in the background it is POSSIBLE for you to get a FHA-Insured home loan.

You get lower financial costs: FHA-insured loans have competitive interest rates because the federal government insures the loans for lenders.

You pay less upfront: FHA-insured loans have a low 3.5% downpayment and the money can come from a family member, employer or charitable organization as a gift.

Easier for you to qualify: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.

Less than perfect credit?: You don't have to have perfect credit to get an FHA-insured mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA-insured loan than a conventional loan.

More protection to keep your home: The FHA has been helping people since 1934. Should you encounter hard times after buying your home, the FHA has many options to keep you in your home and avoid foreclosure.

FHA insures loans for lenders against defaults - it does not lend money or set interest rates. For the best interest rate and terms on a mortgage, you should compare mortgages from several different lenders. An FHA-approved lender can help you start the loan application process.

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1- to 4-unit home, a condominium or a manufactured or mobile home (provided it is on a permanent foundation).

To learn more about how to get a FHA-Insured home loans please visit this Website