Is an FHA home loan right for you?
What is an FHA home loan?
The federal housing association insures FHA home loans for approved lenders. The minimum requirements are often lower than many conventional loans to allow borrowers the opportunity to become homeowners even if they have a less than ideal credit score and limited cash savings for a down payment.
Who qualifies for an FHA home loan?
If your credit score is 580 or more, you can verify your last two years of employment history, and you plan to use this loan to purchase your primary residence, you may be an excellent candidate for an FHA Home loan.
Other things to consider that may affect your eligibility are bankruptcy and foreclosure claims. You’ll have to wait anywhere from 12 to 24 months if you’ve recently filed for bankruptcy and up to three years if you’ve foreclosed on a property. The Adame Team at Caliber Home Loans evaluates each case independently to determine whether or not you qualify. They base your approval on several factors, such as your debt-to-income ratio, the circumstances of your bankruptcy or foreclosure, and your overall financial situation.
What type of property can I purchase with an FHA loan?
One of the requirements for purchasing a home with an FHA loan is that the home meets its minimum property standards. A borrower can buy a single-family residence, which includes a condo unit, manufactured home, modular home, or other FHA approved properties affixed to a permanent foundation.
The main idea is that the home is safe, sound, and secure. The property should protect the health, safety, and security of its occupants and their property, in addition to not having any issues that could affect its structural integrity. An appraisal can verify that a select property is appropriate to house a family and, therefore, can be purchased using an FHA loan.
How can the Adame Team at Caliber Home Loans help?
We are a direct lender who understands that the home buying process is an exciting journey. Still, it is also confusing with all of the different loan options available and requirements to qualify for said loans. We are here to help you analyze your financial situation and choose the loan that’s right for you. If you are considering applying for an FHA home loan, we can answer your questions and help you determine if that is the best solution for your home buying needs.