\n
You must wait at least 12 to 24 months have passed after declaring bankruptcy before applying for an FHA home loan.<\/p>\n\n\n\n
You must wait at least 36 months after a foreclosure before applying for an FHA home loan.<\/p>\n\n\n\n
You must be able to provide proof of employment for 24 consecutive months (pay stubs, bank statements and federal tax returns can all be used for verification).<\/p>\n\n\n\n
The FHA loan must be used for a home that will be your primary place of residence.<\/p>\n\n\n\n
If your FICO score is between 500 and 579, you must be able to put down 10 percent of the home’s value as a down payment.<\/p>\n\n\n\n
If your FICO score is 580 or above, you must be able to put down 3.5 percent as a down payment.<\/p>\n\n\n\n
The home you want to buy must be FHA-appraised and HUD-approved.<\/p>\n\n\n\n
You must demonstrate a front-end debt-to-income ratio of 40 percent or less of your gross monthly income (31 percent or less is preferred).<\/p>\n\n\n\n
You must demonstrate a back-end debt-to-income ratio of 50 percent or less of your gross monthly income (43 percent or less is preferred).<\/p>\n<\/div><\/div>\n\n\n\n
How Does an FHA Loan Handle Closing Costs?<\/h2>\n\n\n\n
Unlike traditional mortgage lenders, FHA-approved lenders are not permitted to assess fees greater than five percent in closing costs.<\/p>\n\n\n\n
In support of this program, the FHA home loan program also permits home sellers, FHA-approved lenders, and\/or home builders to pay up to six percent of the FHA home buyer’s closing costs.<\/p>\n\n\n\n
Are There Different Types of FHA Home Loans?<\/h2>\n\n\n\n
While the FHA loan is the program’s best-known and most popular loan type, the HUD\/FHA home loan program also includes other types of mortgage loans.<\/p>\n\n\n\n
Like the main FHA loan program, these other types of FHA loans are also insured by the FHA\/HUD and the loans are issued through FHA-approved private mortgage lenders.<\/p>\n\n\n\n
FHA 203(k).<\/h4>\n\n\n\n
This FHA home loan is designed to help qualified home buyers to purchase a home in need of repair and renovate it and wrap the costs of the mortgage plus renovation into one mortgage loan.<\/p>\n\n\n\n
The FHA 203(k) home loan comes in two types: limited and standard. The limited 203(k) loan covers up to $35,000 in repair costs. The standard 203(k) covers repairs of $5,000 or more and cannot cause the property value to exceed FHA limits.<\/p>\n\n\n\n
Home Equity Conversion Mortgage.<\/h4>\n\n\n\n
The HECM loan is actually a reverse mortgage product designed to help senior homeowners who have reached the age of 62 converts accrued equity into cash without giving up the title to their home.<\/p>\n\n\n\n
Energy Efficient Mortgage.<\/h4>\n\n\n\n
The EEM is a special mortgage program that offers incentives to install upgrades that boost energy efficiency, lowering monthly utility costs, and boost the home’s resale value.<\/p>\n\n\n\n
Section 245(a).<\/h4>\n\n\n\n
The Section 245(a) loan is a unique FHA loan program that allows for borrowers to increase their mortgage payments over time as their income increases. There are two different programs available.<\/p>\n\n\n\n
The Graduated Mortgage Payment plan simply increases monthly payments over the term of the loan. The Growing-Equity Mortgage plan increases monthly payments and shortens the loan term.<\/p>\n\n\n\n
Is the FHA Home Loan Program Right for You?<\/h2>\n\n\n\n
Now you know about the many different types of FHA home loan options that are available to applicants who qualify.<\/p>\n\n\n\n
The FHA home loan program itself has been in existence for 85 years and counting and has undergone only minor revisions to date during its lifetime.<\/p>\n\n\n\n
This home loan program offers a variety of incentives and perks to help first-time home buyers, home buyers with high debt burdens, home buyers with lower credit scores, and similar issues to qualify to buy a home.<\/p>\n\n\n\n
Before deciding to pursue an FHA home loan, it is important to review the differences and similarities between an FHA loan and a conventional loan to be sure this is the right loan product for you.<\/p>\n\n\n\n
For the right person at the right time in life, the FHA home loan program can open the door to homeownership in ways conventional loan programs cannot.<\/p>\n","protected":false},"excerpt":{"rendered":"
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