The FHA has many benefits for first-time and repeat buyers that individuals can take advantage of. A few examples of these benefits are, the ability to purchase a new home with a low down payment and with a low credit score. Even borrowers who have a significantly lower debt-to-income ratio can take advantage of an FHA home loan. Borrowers can also enjoy less stringent guidelines and requirements when they choose to fund their home with an FHA home loan. These advantages are what make the FHA home loan a popular choice over all other loans including conventional home loans.
Are You Eligible?
Everyone is able to apply for an FHA home loan, it’s not exclusively for first time home buyers. As long as you meet the minimum guidelines, you could be eligible for an FHA home loan. If you currently own a home that was funded via the FHA and is not selling but refinancing, unfortunately, you could not get a second FHA home loan, but if you are selling and not refinancing you could be eligible for a second FHA home loan. There are also FHA refinancing options available if you’re just looking to refinance.
Applying for an FHA Home Loan and the Process
The application process for an FHA home loan is similar to a conventional home loan. The first step is to find a lender, but not just any lender you will want to research and shop around different lenders in order to find the one that best fits you. Be sure to compare lender’s rates, guidelines, and requirements and receive quotes from each one as these things often change. Once you have found the lender for you, your next step in the loan process is to fill out the application and make sure you’re ready to produce the following documentations for your lender to help speed up the qualifying process, these documents are;
- Full Name and Address
- Social Security Cards
- Employment Information such as pay stubs
- Additional Income information
- Asset Information
All the information above is what your lender will use to create your pre-approval, if you’ve already taken the steps to find a house and found the one you’d like to apply for, you can skip the “pre-approval” stage and jump right into the start of your loan process. Your lender may ask for additional information from you not listed above, just be sure you can get it to them in a timely manner as it can help speed up the entire loan process.
After you have applied and you’ve been approved or have received your pre-approval, you will need to make sure you’re ready with any of the down payments or money due by closing. This may include mortgage insurance and closing costs. If you don’t have the money available right away, the FHA will allow borrowers to receive “gifts” for a loan. The FHA also offers down payment assistance programs to qualified borrowers. A “gift” is money given to you by a friend or family member that can be used towards closing costs or down payments due by the closing date of your home.
Finding an FHA Home Loan Qualified Lender
Not every lender will offer the same programs nor will they have the same guidelines. This is why it’s important to shop around to different lenders and compare what each lender has to offer. This will help you find a lender who best fits your needs. You can start your lender search right now by clicking the button below and within minutes, you’ll be matched with an approved lender eager to help you will all your loan needs and answer any questions you may have. It’s quick and easy to get started and only takes a few minutes.