Here’s why You Should Consult a Home Mortgage Lender
For some potential first time home buyers, the idea of meeting a home mortgage lender in Texas may seem scary. To your surprise, a lender will help you not only choose the right mortgage plan, but also make it easier for you to get a home loan. The lenders will help you choose the best financing options that will suit your financial needs including budget.
A preferred loan option among a large number of first time home buyers is FHA loans. The Federal Housing Administration mortgage program is sponsored by the U.S. government. It helps Americans to purchase a home even when they are not able to qualify for a conventional loan.
Qualifying for an FHA loan
The qualification requirements of FHA loans are much easier to meet as compared to conventional loans. Read on to get an idea about the qualifying factors of FHA loans.
Loan amount - In order to qualify for an FHA loan you should apply for an amount that meets the parameters that have been set by federal regulations. FHA programs aim to increase home ownership among Americans who belong to the middle and lower-middle income groups. In order to meet this objective, FHA has come up with a maximum mortgage loan amount, which differs according to the area where you reside.
Credit History - One of the main advantages to an FHA loan is that a borrower with a less than perfect credit score can still qualify for this mortgage. The aim is to provide home ownership to every American who has proof of their income and the ability to repay the loan. Your credit history will be checked individually to consider the circumstances surrounding the debt. However, you need to have a credit score of 600 or better in order to be eligible for an FHA loan.
Foreclosures and Bankruptcy -A borrower who had filed for bankruptcy or had a previous foreclosure is also eligible for an FHA loan. However, the foreclosure must have been a minimum of three years ago and the person should have maintained a good credit score. In the case of bankruptcy, it must be at least two years old and the borrower should have maintained an acceptable credit score after that.
These are some of the factors that determine whether you can qualify for an FHA loan. An expert lender will help you in qualifying for this loan and to buy your dream home.
Darrick encourages readers to post issues about mortgage loans to home mortgage lenders that need immediate attention. These interactions will enhance reader engagement and provide a roadmap to others.