FHA approved lenders are the people who can help you acquire a place you can call home. Time is hard right now as everyone is aware of the economic conditions. People work hard to earn a living, so it is not that easy to save money to buy a home. Some people think that getting a loan can be helpful in this situation. You decide to apply for a conventional loan before contacting the FHA approved lenders.
But not every person with low income qualifies for a conventional loan. The reason is quite simple. The process of obtaining a traditional loan is complicated, and not everyone can afford to pay a huge amount as down payment. If you want to fulfill your dream of purchasing a house, then FHA loan is the right option for you. Let’s talk about the:
- FHA loan facts
- How to find the FHA loan lenders
- FHA loan considerations
FHA approved lenders for bad credit:
Everyone dreams of buying a house of his own. But not everyone is lucky enough to fulfill his dream especially with the low income and bad credit scores. When you apply for conventional loans with a low credit score, they will be most likely to refuse it. But it does not mean that you can never get a house of your own.
FHA loan provides great assistance to many first time home buyers. It offers mortgage loans with low down payments. You have a low credit score, no worries still you have a chance to apply for FHA loan. But the recent policies have made it out of reach of the people who have a questionable credit history.
Your FICO score is 580 or higher you can obtain FHA loan for 3.5% down payment. Your FICO score is lower than 580, then get an FHA loan for 10% down payment.
FHA loan facts:
An easy way to qualify for a loan is the FHA loan. It is the best option for the people as it offers:
- Flexible choices
- Less rigorous lending standards
- Lower down payments
Let’s have a quick look at the FHA loan facts:
- A loan for those with low credit score or without an outstanding credit history
- Insured by Federal Housing Administration
- Ideal for a down payment (3.5% required)
- Fixed-rate loan
- The borrowers may be eligible for additional loans to cover home repairs with an FHA Loan,
- Monthly mortgage insurance premiums required
- Features less rigorous lending standards
- An FHA-approved appraiser must appraise the home
- Credit score of 580 or higher, then 3.5% down payment
- Credit score less than 580 then 105 down payment
Find the best FHA lenders:
It is essential to know that the FHA does not provide the loans directly to the borrower. The lenders approved by FHA offer loans to the consumers. In other words, FHA loan is a simple loan insured by federal housing administration to save the lenders from the loss that may occur if the borrower fails to repay the loan amount. The lender has to adhere to all the guidelines set by the federal government to be in the list of the approved lenders.
Find an approved lender and submit your application. It is not that difficult to find an approved FHA mortgage lender in your area especially in the era where everyone uses the internet. Just type the words “FHA approved mortgage lenders and then write the name of your city or state.” You will get a list of all the approved lenders. Pick one of them and contact him to take a step further in the process of fulfilling the dream of owning a house.
FHA loan considerations:
The borrower has to submit an application to HUD and pay a fee that is non-refundable. He also has to provide various organizational and financial documents for HUD review.
The FHA approved lenders must check whether the borrower has met all the specific guidelines set by FHA to apply for the loan. FHA mortgage loan is no doubt an excellent opportunity for the people with low down payments to buy their own house.