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Mortgage:
Your First Mortgage
FHA Home Loan
How to
Pre-qualify for an FHA Home Loan
FHA
home loans are mortgages that are
insured by the United States government,
more particularly the Federal Housing
Administration. FHA in itself does not
make the loans. What they do is that
they insure the loans that were in turn,
given out by their qualified group of
commercial lenders.
With
the introduction of the FHA home loan, a
lot of low-income Americans were able to
secure a loan to purchase their homes.
FHA home loans are conceptualized in
1930's during the time of the Great
Depression. The government acted to
subsidize loaning programs through FHA
in response to the growing rate of
defaults and foreclosures.
The
good news is that FHA is for every
American. But they have to follow the
set guidelines in applying for it. To
know if you qualify for an FHA home
loan, here is a checklist that you can
use. See for yourself if you can take
advantage of FHA's easy mortgage loan
plans.
1.
First and foremost, you should have a
steady employment history. By this, you
should be able to prove to the agency
that you have at least two years of
service with your current employer.
Stability of job and income is the main
factor. That's the primary requirement
of FHA.
2. You
should have an increasing income, or at
least, a consistent one. So that FHA can
correctly assess your capability to pay,
you should show them that in your
current job, you are earning a fixed
amount. And if in case it is not the
case, your income should follow a steady
rising pattern, not a fluctuating one.
3. You
should be able to boast about your
credit history. Your credit report
definitely says a lot about your
financial status. It is FHA's
requirement that all their applicants
are in good credit standing. And not
only that, they also require that there
is not a single payment over due for
more than a month within the last two
years in their credit reports.
4. You
should also show that you've got no
history of bankruptcy. Or even if you
had, it should be at least two years
before. You should also show and that
you already had regained financial
stability for the past two years. You
should be in a good credit standing for
two consecutive years.
5. Your
foreclosures, if any, should be three
years old at the very least. This one
follows the same principle as the
bankruptcy rule stated above. It is a
must that for the past three years, what
you have is a good credit standing.
6. You
can only apply for a loan that is 30% of
your total monthly income. If you have
everything else worked out, remember
this last important detail: FHA will
approve you a loan corresponding to your
gross income. So, do not apply for one
that exceeds 30%. Your application will
just be denied. Look and settle for a
house that is just within the set
limits.
These
are the different points to consider
when applying for an FHA loan. You
should qualify in the every step stated
here. These are the exact guidelines
that FHA is currently following.
But you
have to know that pre-qualifying for the
loan is just the first step. It is not a
guarantee of anything. All it means is
that FHA will merit a review of your
application and proceed from there. Your
dream of buying the perfect house is
still in the cooking stages, so to
speak.
Pre-qualification is the first step to
getting a loan, though. Needless to say,
it is an important step altogether. If
you don't pass the pre-qualification
stage, there is no way that you will be
able to purchase the house that you
always wanted, at least not through
FHA.
What
the pre-qualification step really does
is that it assesses your income, your
assets, and your ability to pay. After
which, you are to show it to the lender
waiting in the wings. Then they further
study your case. You'll get the loan
once they see that you are indeed,
financially stable.
With
all these said, go ahead and start
evaluating yourself for an FHA home
loan. Take advantage of what they are
offering today. This is your chance to
own the house of your dreams. Take it
while it is still there.
Table of Contents
Mortgage News:
Live Search: mortgage site:msnbc.msn.com
Search results
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As millions of homeowners fall behind on mortgage payments and face foreclosures, many are running into bureaucratic nightmares as they try to restructure their loans.
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Foreclosures hit some cities hard - Mortgage Mess- msnbc.com
Foreclosures rates continued to rise in the third quarter in most of the top 100 largest metropolitan areas of the country, according to the latest data from RealtyTrac.
Day laborers saw better days before foreclosures - Mortgage Mess ...
The most desperate men park themselves on corners well before dawn, hoping for first dibs on jobs. Most days, no one gets dibs ? no one gets jobs.
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