First Time Homebuyers
FHA loans were created by the Department of Housing and Urban Development. The guidelines and qualifications are more lenient than a standard conventional/conforming mortgage, so more borrowers are able to qualify for a mortgage. These loans allow flexible down payment options, and help paying closing costs. So, an FHA borrower can buy a home with no out of pocket expense.
If you are a first time homebuyer with limited credit and income, an FHA loan may be the right loan for you!
Zero or Minimal Down Payment and Closing Costs:
- Down payment can be as low as 3% of the sales price
- 100% financing options available with a down payment assistance program
- Gift funds for the down payment and closing costs are allowed
- No reserves are required
- FHA regulates the closing costs
- Seller can pay borrower’s closing costs
Easy Credit Qualifying Guidelines:
- No minimum credit score requirements
- Flexible guidelines for 30 day late payments
- Bankruptcies okay with good credit since the discharge
- Foreclosures okay if three years since discharge, with good credit since
- Permanent Resident Aliens okay with proper documentation
- Non Occupying Co Borrowers are allowed, so a family member can co-sign, but does not have to live in the home with borrower
- Parents can purchase a home for their college student to live in
Easy Debt Ratio & Job Requirements:
- Higher Debt Ratios allowed compared to conforming loans
- Two years proof of income W-2s, pay stubs, tax returns, Social Security
- Short job time is okay for recent graduates with no prior job experience
- Self employed individuals okay
|
