FHA Home Loan Requirements in Palm Beach Gardens, West Palm Beach FL.

FHA loans are issued by federally qualified lenders and insured by the Federal Housing Administration (FHA), which is a division of the U.S. Department of Housing and Urban Development. Thanks to this guarantee, FHA loans are available to home buyers that don’t qualify for traditional loans.

Understanding that the FHA is not a mortgage lender, but a mortgage insurer is a significant distinction for homebuyers to know. It implies that you can get an FHA-insured loan from any mortgage lender that is approved by FHA. You do not "go to the FHA" to obtain an FHA loan. You “go to the approved mortgage lender.”

 

How Do FHA Loans Work?

As stated above, the FHA does not provide loans; it insures loans. The insurance minimizes the default risk that lenders face when borrowers put down less than 20% towards a purchase. FHA authorized lenders to approve borrowers that have a less-than-perfect credit score and as little as 3.5% to put down on the loan. Although FHA mortgage loans were designed for serving low-and-moderate-income home buyers that would have otherwise not qualified easily for a conventional loan, anyone can apply for one.

Also, FHA approved lenders can do the following actions without any further approval from the FHA:

  • Take the loan applications
  • Process the loan applications
  • Underwrite and close the loans

Who can qualify for an FHA loan?

First time home buyers, repeat home buyers, and current homeowners looking to re-finance - anyone that can meet the requirements of this program can get an FHA loan. You should be able to prove that:

 Your monthly loan payment will be less than 31% of your total monthly income.

Note: Please understand that your monthly loan payment will include your Principal, Interest, Taxes, and Insurance (or PITI), and also monthly mortgage insurance.

 You have a clean credit history showing that you maintain and timely pay off debts.
 You are a legal resident of the US.

Your lender may have some additional requirements which apply to you, your down payment and the house you are purchasing, so make sure to ask.

Want to learn more about the FHA loan program?

Contact My Liberty Loans and find out how to qualify. Call (561) 799-4015 or visit https://www.mylibertyloans.com/ to book your appointment. If you want to get an FHA loan to buy a house in West Palm Beach, FL, they can offer you the best mortgage quote.

Monday, 07 May 2018 11:14