Are you thinking about applying for a mortgage loan and think that an FHA loan may be the right choice for you?
In this article we will cover how you apply for an FHA loan and the benefits that this loan offers you as a home buyer.
How to Apply For FHA Loans
To apply for an FHA loan you should contact a lender or mortgage broker who is FHA approved and you can easily find this information online by searching going to http:/www.hud.gov to review their HUD approved list of mortgage lenders or contact us for highly qualified lenders that we have built relationships with that can streamline the loan process.
What’s needed to Qualify for an FHA Loan?
In order to qualify for an FHA loan you will need to have a credit score that’s not lower than 580 although some people with credit scores under 580 will be permitted under special circumstances.
Unlike mortgage loans that require a down payment of 20% to buy a home you can get an FHA loan with a down payment that’s as low as 3.5%,
Before applying for an FHA loan make sure you do your due diligence and prepare for meeting with a mortgage lender by preparing the following:
- W2’s from the last two years.
- Income tax returns from the last two years.
- Your addresses from the last two years.
- Employer name, address and gross amount / salary that you’re earning at your current job.
- Bank statements from the last two years.
Veterans may need to submit a DD Form 214 with their FHA loan application.
One common mistake some people make before applying for FHA mortgage loans is buying more items on credit or taking out additional loans, to keep the process of buying a home simple when applying for an FHA loan don’t cloud your credit or increase your debt-to-income ratio, keep your financial picture simple and you will be able to buy a home with an FHA loan without complicating your financial history.
Learn More about FHA Loans
To get started with applying for an FHA loan contact Fred Sed Realty today by calling us at (800) 921-9231 or click here to connect with us online.