The Federal Housing Administration (FHA) does not make loans, It Insures loans. In the event of foreclosure, the lender is protected by mortgage insurance issued by the government through the FHA. The insurance covers the full value of the loan.
Recently, the primary function of the FHA Mortgage insurance program was to ensure that low-income families, first-time buyers and other borrowers who could not qualify for conventional loans could obtain a mortgage.
FHA Loans are now available to more Americans as a result of higher loan limits.
Recently, the primary function of the FHA Mortgage insurance program was to ensure that low-income families, first-time buyers and other borrowers who could not qualify for conventional loans could obtain a mortgage.
What are the requirements for an FHA Loan?
Advantages of FHA loans include low down payments, no prepayment penalties, and fee limits on closing costs. Below you will find minimum requirements for an FHA Loan.
- The Co-Signer is a close family member or demonstrate a long-standing family relationship with the primary Borrower(s). (If no such relationship can be verified, the LTV cannot exceed 75%)
- The subject property is a single family detached, PUD, or an approved condo unit.
- Co-Signor must have a primary residence in the United States of America.
- A complete credit underwriting analysis will be performed for the non-occupant co-signor. The income, assets and debt will be included in the loan information and will be weighed equally with the borrower(s).
- For an FHA mortgage, a borrower must have a minimum down payment of 3.5 percent of the home’s sales price in order to qualify for a purchase mortgage transaction. For a refinance transaction, the borrower must have a minimum of 3.5 percent equity after the closing costs are added to the loan value in order to refinance the debt with no funds out of pocket
If you feel you meet the above requirements and are interested to see if you can apply for a loan.
Give us a call (702) 696-9900. Our staff is available typical working hours and will love to get you the loan you need for the house your want.
Give us a call (702) 696-9900. Our staff is available typical working hours and will love to get you the loan you need for the house your want.
