FHA

FHA loans have been around for many years , low rates, flexible credit guidelines and low down payment requirements make FHA a great option for many.

FHA qualify
When researching your options it’s important you are clear on what kind of mortgage best suits your financial needs. Let’s take a look at the qualities FHA likes to see in you (a borrower):

Credit score

Score of 580 for 3.5% down payment

FHA may allow even lower credit scores, but you’ll be hard-pressed to find a lending institution who will lend on such low credit scores..

Down-Payment

3.5 % down payment is the minimum requirements

Debt Ratio

FHA is flexible and has been known to exceed their suggested 43%. We have approved loan with 56% ratio

Gifts
FHA is fairly flexible with gifts for down payments and closing costs. They are, however, very strict about the source of the gift funds. Under no circumstance may the gift funds come from any one person involved in the sale or purchase of your future home.
Acceptable sources for gifts: Relatives, Employer, Agency sponsored homeowner assistance programsFHA is very specific about the source of the gift funds so be sure and discuss the details with me

Employment
Lenders like to see stability in a borrower and FHA is no different. FHA requires a two year work history, preferably with the same company or at the very least the same industry.

Reserve Requirements
Reserves are the savings you will be left with after your down payment and closing costs. One month’s reserve is equivalent to one month’s mortgage payment (principal, interest, taxes, insurance and mortgage insurance)
While FHA does not require you have reserves when purchasing either a single family home or condominium, if you are purchasing a duplex or multi-family two–three months will typically be required.

Home Condition
The home must meet FHA’s minimum standards for the safety, quality and condition. Any defects found during the home inspection or appraisal which fall outside of FHA’s standards will need to be repaired prior to closing