FHA Loan Qualifications


The Federal Housing Administration (FHA) offers lenders insurance
against borrowers defaulting on mortgages. This insurance helps people
who many not otherwise qualify for a home loan to buy a home. The FHA
only insures the loans that meet certain criteria. Borrowers may face
specific qualifications from lenders as well to get a FHA loan. It is
important to discuss the FHA's loan qualifications with your lender
and shop for the best terms before deciding on a mortgage. FHA
BasicsThe basic FHA loan qualifications require borrowers to have
lawful residency in the United States and to be of legal age, which is
18 years old in most states. The home buyer must have a Social
Security number and
The Federal Housing Administration, or FHA, has helped millions of
Americans become homeowners since its inception in 1934. Its mortgage
insurance programs protect lenders against homeowner default, paying
claims with insurance pool funds. This government insurance helps low-
and moderate-income borrowers get financing from approved mortgage
lenders for the purchase or refinance of a home. FHA offers three
refinance types: the streamline; rate and term, or no cash out; and
cash-out refinance. The administration also offers a refinance for
borrowers in negative equity positions as a temporary option available
from September 2010 through December 31, 2012. Qualifying for an FHA
refinance invol
Personal Finance
FHA streamlined refinances have been around since the early 1980s. The
term "streamlined' is used to describe the reduced amount of paperwork
these loans require, not the cost involved in purchasing one. If you
already have an FHA loan, you are current with you payments, and the
refinance reduces your monthly principal and interest payments, you
can apply for a streamlined FHA refinance. There are two types of
streamlined refinances: with an appraisal or without. Each one is
calculated differently.Difficulty:ModerateInstructions Things
You'll Need
Latest loan statement

Streamlined
Refinance With an AppraisalFind out what your existing principal
balance is. You c

Personal Finance
The Federal Housing Administration partners with lenders around the
United States to offer FHA loans and 203k loans. FHA loans are
designed to help people with minimal funds for a down payment to buy
first time properties and people with existing FHA loans to refinance
to lower rates. 203k loans enable home buyers to have access to
additional funds beyond the purchase price to pay for necessary
repairs on homes in a state of disrepair. HistoryDuring 1934, at
the height of the Great Depression, Congress established the Federal
Housing Administration. The FHA was created to provide mortgage
insurance on low down payment loans to encourage banks to write loans
and to help Americans with mini
Personal Finance
Federal Housing Administration (FHA) mortgage loans are easy to
acquire because they're backed or insured by the government. While
easier to obtain than other types of home loan products, FHA outlines
specific qualifications for its mortgage loans. Obtaining a home loan
with the Federal Housing Administration entails meeting these minimum
requirements before the loan is awarded. Credit HistoryLike most
mortgage loans, acceptable credit is necessary to acquire an FHA
mortgage loan. Lenders that offer FHA loan products will accept buyers
with a bankruptcy or foreclosure in their past (two years for a
bankruptcy and three years for a foreclosure). However, qualifying
requires maintaining a g
Personal Finance
An appraisal is an essential part of any real estate transaction. It
determines how a property measures up against comparable properties,
provides an analysis of value and notes any deficiencies that put the
lender at risk. The Federal Housing Administration (FHA) requires an
appraisal inspection for all mortgages it insures. FunctionFHA
insurance protects the lender against losses in case a borrower
defaults. The FHA insures loans for purchases or refinances. The only
exception to FHA's inspection requirement is the streamline refinance.
The program, which requires minimal credit qualifying and
documentation, may be completed with or without an
appraisal.
FeaturesWhether proposed for
Personal Finance
Financing a home will typically come with three different choices.
Buyers can opt for an FHA, VA or conventional home loan, depending on
personal financial factors and base a decision on the home loan that
works best for their financial situation. Knowing the benefits to each
type of loan is the first step in making an educated choice. Down
PaymentWith FHA the minimum down payment required is 3.5 percent.
Conventional loans will require 5 percent minimum down, and VA loans
require no down payment.
PMI and MIPPMI or MIP is a monthly premium
paid to the lender to protect them against losses from a loan default.
this will range from 0.5 to 0.55 percent on FHA or conventional home
loans.
Personal Finance
The Federal Housing Authority (FHA) does not issue loans. Instead, it
offers insurance for loans that they approve to entice lenders to make
loans to individuals who might not otherwise qualify. A major
advantage of FHA loans is that they require a significantly lower down
payment, which can be a major hurdle for home buyers. The standards
for acceptance are also lower than most conventional mortgages.
Monthly Payment to Income QualificationsWhen lenders look at potential
borrowers for issuing a mortgage, they want to know that the person
has the income stream to make the payment each month. Lenders of FHA
loans look to see how your monthly mortgage payment compares to your
monthly income
Personal Finance

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