FHA Loan Eligibility

Right now is a great time to apply for an FHA Loan. The FHA has been helping Americans afford new homes for over seventy years, and the program is still going strong today. While the FHA does not actually issue the money itself, it does insure the loan for you. This makes you a much more secure borrower and one that private lenders are willing to pass on benefits to.

Overview of FHA Loans

The FHA loan program helps millions of Americans become first time homeowners by extending really great benefits that make the loan process easy and affordable. These benefits include:
- Low down payment. You can receive financing for up to 96.5% of the total cost of the house, making the down payment a very minimal expense.
- No insurance. Most conventional loans require you to pay for private mortgage insurance in order to get a low down payment loan. The FHA already insures the loan for you, which eliminates the need for more insurance.
- Easy qualification. Getting approved for an FHA Loan is much easier than for a conventional loan since the FHA has more lenient rules regarding credit scores and financial situations.
- Lower overall costs. The FHA makes the overall cost of the loan much more affordable by offering borrowers competitive interest rates.
- Avoid foreclosure. The FHA does not want you to default on your loan, and therefore has implemented some great programs to help you avoid foreclosure.

Good Candidates

While anyone can apply for an FHA Loan, here are some individuals that will specifically benefit from this program:
- First time home buyers. People who have never owned a house and don’t have very high credit scores will be able to qualify for an FHA Loan.
- Senior citizens. Individuals over 62 can take advantage of the FHA’s reverse mortgage program to take out cash from the house’s equity.
- People who can’t afford a down payment. While you still have to provide a down payment on the house, it is much lower than a conventional loan. Plus, the money for the down payment can come from another source.

Get Started Today!

If you think you will be able to benefit from applying for an FHA Loan, let us help you get started today by filling out our secure online form. It only takes a minute and will have you pre-qualified for free instantly.

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