For many first-time homebuyers, the FHA loan is the perfect companion to homeownership. Not only does this government-guaranteeing loan program enable dreamers to buy homes, but they also make the process easier for them.
If you’ve already found a home you’d like to purchase and are considering buying it through the help of the Federal Housing Administration, allow this blog post to guide you on the general steps.
How To Apply for an FHA Loan: what’s in the form
Specify your kind of loan
Specify the type of mortgage you’d like, how much the loan is and the interest rate your lender of choice assigned, the duration of your loan, and whether it’s an adjustable mortgage or one that’s fixed.
Mention your desired property
Mention the address, a legal and thorough description of the home, when it was built, and other similar specifics. Mention if the FHA loan you’d need is for refinancing, purchasing, or construction.
Provide personal information
Vital information such as your complete name, social security number, marital status and other information such as whether or not you have a co-borrower will be disclosed here.
Provide employment details
If one has a co-borrower, then their employment details will be needed, too. In this section, borrowers will be tasked to provide information as to their current employment arrangements and the longevity of his or her stay. Salary, of course, is one thing that will also be discussed here. Know that FHA forms provide a space for your present employer to fill out. This stage is where you reveal your financial capacity and all your earning potential channels and mediums.
This stage calls the discussion of assets. In this regard, assets can also pertain to money in checking accounts, stocks, savings, and bonds, or other types of investments. Business owners may even talk about its value. Logically, one’s existing real estate properties also come to play here. Liabilities and existing financial responsibilities are discussed here, too. This information, along with other details relating to income, is what helps the lender and FHA compute how much your DTI is.
Provide property transaction specifics
The purchase price of the property at hand, any necessary property improvements (if ever), estimated closing costs and mortgage points (considered to be a prepaid item) are all discussed here.
Cross out a checklist on legalities
Questions here are about the borrower’s legal history issues. Circumstances that involve lawsuits or bankruptcies are disclosed here.
For a thorough list of steps and guidelines on what to expect and what to prepare, apply for a home loan online here.
Benefits of an FHA loan
- Cheaper down payment
For anyone with a FICO standing of 580, they may be eligible to buy a home by putting in a meager 3.5% of a down. Anyone with at least a 500 credit score can still make the cut but will need to pay a 10% down payment.
- Flexible Standards
Compared to conventional mortgages, the FHA can forgo a few guidelines as long as the applicant can make up for it or present a counterpart or a remedy. As a matter of fact, several applicants who’ve had to file for bankruptcy are still able to buy home with an FHA.
Contact us for more information!