FHA Loan qualifications

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FHA Loan qualifications -
By: Walter Hilliam, Posted on: 2008-09-07

When you want to buy a residence, there are quite a few types of mortgages that one could get. They could get either a conventional loan or an FHA loan. FHA loans are different from conventional loans, since they assist those who have less than ideal credit and sometimes even really horrible credit. In addition, they also help those with little money make home ownership a reality. The FHA loan process is very much like the conventional loan process, it just requires more documents and information. To qualify for a basic FHA loan, guidelines state that the buyer must have two years of steady employment (preferably with the same employer). The last two years of recorded income should either be the same or should have increased, and an inspection of a credit report should show less than two 30-day late notices. Bankruptcies, if any, should have occurred two years or more in the past, with three years for foreclosures. Any existing mortgage payments should be less than 30 percent of the buyer's gross income. Many documents are necessary to qualify for the FHA loan. There is a list of documents containing fifteen items. These items include loan documents, documentation on income, credit, and savings. Also, ratio documents, FHA loan closing costs, documentation on loan processing, submission, underwriting, and documentation on FHA loan approval. Documentation is also needed on funding the FHA loan, recording documents, closing your escrow, property appraisal, and finally, documentation on information on possible delays. The FHA loan program requires that all the information be in one file before it can approve the FHA loan. There are a lot of services not only on the internet, but also physical facilities which can offer to help buyers sort out all this information. Your credit score will give you a pretty good idea whether you will qualify for a mortgage through FHA. It keeps you from wasting time filling out all those forms when you might be refused anyway. Knowledge will let you answer questions about fixing things which keep you from qualifying. An approval of your FHA loan will be the end result of all the time and effort it will take to get everything all set up, but it is so worth it! Don't get overwhelmed with looking for a loan to buy a home, contact an FHA agent today and they will take all the stress off of you because they offer many services for free such as FHA loan services, loan updates, interest rate tracking and much more in the effort of getting their buyers the loan they need. To find out what your credit score is, you can go to one of several website and pay a small fee; since your credit score is an essential component in deciding whether you will receive an FHA loan, it is important to know what your score is.

Article Source: http://business.articles-and.info

Walter Hilliam is the owner and operator of www.fha-loan-expert.com FHA Loan

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