FHA Loans for Home Buyers
Getting Started on Your Home Loan
When you begin to seriously consider purchasing a new home it is important that you follow some simple steps to make sure that the process runs smoothly.
Analyze Your Debt-to-Income Ratio
This will let you know what type of home you can afford based on your monthly income and expenses. The next important step in purchasing a new home is to get pre-approved for a home loan. The peace of mind that comes with knowing that your mortgage loan and credit report have been approved will allow you to shop for your new home with confidence. And when you find a home and are ready to make an offer the fact that you have already been pre-approved for your loan amount will give the seller confidence in you as a buyer.
FHA Tips for Home Owners and Home Buyers:
Useful information about FHA refinance loans, new FHA loans, and the guidelines that HUD wants you to follow.
Today the mission of the FHA includes helping borrowers get amounts they qualify for, and assisting lenders by reducing their risk in issuing loans.
If you have had credit problems in the past, the FHA recommends a Consumer Credit Counseling program to avoid being denied an FHA loan.
If you submit FHA paperwork electronically, the FHA TOTAL Scorecard is used to measure the credit risk of all FHA loans submitted through the automatic underwriting system.
The FHA asks for a lot of information on your FHA loan application. You will need to provide the FHA with a wide range of details.
The FHA asks that veterans submit the DD Form 214 along with their FHA loan application paperwork. The DD Form 214 is the official record of discharge from the Armed Forces.
If you have an FHA loan or HUD insured mortgage, you may have paid an "up-front" mortgage insurance premium at the closing of your house.
The 203(b) FHA Fixed Rate Mortgage Loan Program is the widely used FHA home loan, especially among first time home buyers.
FHA loans do not come directly from the FHA. The FHA guarantees home loans, reducing the risk to lenders and offering increased borrowing power to qualified applicants.
To pre-qualify for this mortgage, you should be ready to demonstrate employability, job stability and reliability.
In early 2006, a HUD press release announced an increase of nearly thirty thousand dollars in FHA-insured home loan money being made available to borrowers for single-family home mortgages.