How do you know if
VHA Loan is right one?
The Federal Housing Administration (FHA) offers a number of programs that promote home ownership. Because it requires a relatively small down payment, an FHA loan might be the perfect way for you to purchase your first home, or your next home.
FHA home loans are insured against home owner default by the FHA. This protects the lender from financial loss and increases your chances of being accepted. You are charged an upfront mortgage insurance premium that is included in your monthly payment.
Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 580 or higher. The borrower’s credit score can be between 500 – 579 if a 10% down payment is made. It’s important to remember though, that the lower the credit score, the higher the interest borrowers will receive.
IT’S NOT DIFFICULT TO QUALIFY
FOR AN FHA LOAN
- You will need a decent credit history, (but it does not have to be excellent).
- You will also need a reasonable debt-to-income ratio.
You will likely be approved for a home loan relative to the market prices of homes in your search area. Elite Mortgage can help you determine the FHA mortgage limits for your region.
- The ability to purchase with a down payment as low as 3.5 percent.
- Lack of prepayment penalties.
- FHA loans may be assumable by another buyer if you decide to sell.
- More relaxed credit qualifications than conventional loans
Contact us today to see if you qualify for an FHA home loan.