Prequalify for an FHA Loan
Getting Started Before You Find a Home
FHA home loans were designed to help Americans fulfill their dream of homeownership and are therefore the easiest type of real estate mortgage loan to for which you can qualify. Among the home loan options available that require a minimal down payment, FHA loans are the most popular. In fact, the FHA loan is the most flexible type of home mortgage loan available.
THE ESSENTIALS
- Steady employment history, at least two years with the same employer.
- Consistent or increasing income over the past two years.
- Credit report should be in good standing with less than two thirty day late payments in the past two years.
- Any bankruptcy on record must be at least two years old with good credit for the two consecutive years.
- Any foreclosure must be at least three years old with good credit for the past three years.
- Mortgage payment qualified for must be approximately 30 percent of your total monthly gross income.
- If you can answer YES to these statements you should have no problem qualifying for an FHA home mortgage loan.
While prequalifying for a loan doesn't necessarily guarantee that you will be able to purchase the home of your dreams, it does help you and potential lenders know your borrowing power and what you can afford in terms of a monthly mortgage payment. Prequalifying for a loan simply means that you have taken an inventory of your income and assets and submitted them to your potential lender. Based on that information you should be able to qualify for a home mortgage loan.
FHA Loan Programs
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FHA Loan Articles and Mortgage News
April 8, 2024 - Do experts think mortgage rates will drop during the spring of 2024? Some say no, but that doesn’t mean house hunters should give up hope. Many hang their hopes on the potential that the Fed will cut interest rates in late spring or early summer.
April 7, 2024 - If the home can’t pass the appraisal or if the home can’t be repaired to pass an appraisal, this could result in the lender denying the loan. The same is true if the home is located too close to high voltage power lines, oil or gas drilling operations, or in certain natural disaster hazard zones.
April 6, 2024 - The FHA reverse mortgage is an option for these qualifying applicants that lets the borrower take cash at closing time on a loan that is not due until the borrower dies, sells the home, or stops using it as the primary residence.
April 5, 2024 - FHA mortgages are a good idea for borrowers who want to save money upfront on the mortgage and ideally have FICO scores of 580 or better. Those with FICO scores below 580 should work on credit and other financials before applying for a loan.
April 4, 2024 - Trying to time your commitment to a specific day doesn't make sense when rates dip lower. Why? Because you can’t get an interest rate lock commitment from the lender until you are ready to commit to a specific property you want to buy.