FHA Loans Advice
FHA Loans are type of common loan preferable by peoples with low and moderate income. It just need 3% - 5 % down payment from borrower, thus this makes them be very attractive for homeowners. They also can be use in conjunction with state bonds and grants.
As usual loans, there are some basic requirements from FHA :-
1) 1st, borrower must have a steady income and have worked for the same employer for at least 2 years. This will shown that you are capable to repay back the loan.
2) Able to spend a down payment (3.5%) for the house. However, if your credit score is poor, you will be required to contribute more down payment. And much down payment spend will increase the chance of getting this loan, proving that you are committed to the loan.
3) Have a valid Social Security Number, residence of U.S.
4) Mortgage payment shall not exceed 31% of your gross monthly income. Otherwise your application will probably be reject, so select the house within your budget.
5) If you has filed for bankruptcy, you must at least 2 years out of bankruptcy and with recovered with good credit.
6) If you has been foreclosure, you must at least 3 years out of foreclosure and recovered with good credit also.
If you have considered the loan, the following documents shall be ready for submission once asked by lender :-
1) Banks statements of your banking account
2) A monthly pay stubs.
3) Driving license, Permanent Resident Alien Card
4) Tax return
Although an excellent credit is not the main factor affect the loan at FHA but repairs in advance to applying for the loan will speed up the loan process.
For more home loans information, please check out Home Loans Guide instead of FHA Loans
or Various Loans Guide for other loans information.
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