How to Apply for your FHA Loan

If you are a first time homeowner or are thinking about refinancing your current mortgage, you will definitely want to consider going through the FHA to obtain your loan. The FHA home loan program was implemented in 1934 as a way to help American families afford homes during the Great Depression. Since then, the program has helped millions of families realize the dream of homeownership and avoid foreclosure.

Benefits

The FHA has helped millions of Americans over the years by making the loan process much simpler and more affordable than conventional loans. For starters, it is possible to qualify for up to 96.5% financing on your new property. This low down payment of 3.5% is much more affordable than the typical 20% often associated with conventional loans. Because you are insured by the Federal Government, you also will not be required to purchase any additional private monthly mortgage insurance. Finally, as such a secure borrower you will be able to take advantage of competitive interest rates.

Qualifying

To qualify for an FHA loan, you will still be required to provide financial documents. However, qualification for FHA loans is much more lenient than with conventional loans. Even if you have filed bankruptcy in the past, you might still be able to qualify for a loan. The financial documents you might be required to supply include: W-2 forms, IRS tax returns, credit scores, bank balances and debt-to-income ratio. You will also need to supply your employment history and all previous home addresses from the past two years.

Starting the Loan Process

Before you decide to apply for a loan, you will want to get pre-approved so that you know how much you can qualify for once you start house shopping. When you have found the house you want to purchase, your next step is to find an FHA approved lender, which can be a bank, mortgage company or savings & loans association. You and your lender will need to go through all the steps to obtain the FHA loan which includes reviewing financial documents, having the house appraised, paying closing fees and signing all notes and mortgages.

Get Pre-approved Today!

Getting pre-approved for an FHA loan has never been easier. Simply fill out our secure online form and we’ll have your free pre-approval within minutes!

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