FHA loan is principally low-cost and easy way for families with a limited budget to borrow money for the home purchase, which they would not otherwise be capable to afford.
Federal House Administration’s loan has several main requirements, so make sure you qualify.
First of all, the potential customer needs to fill in the FHA loan application form carefully. In case the borrower’s credit score and financial situation are stable, he has an opportunity to be pre-approved. Just make sure the property meets the requirements of health and safety regulations and define its price.
The next step will be to supply all the necessary documentation proving your employment status, credit and personal information about:
- your monthly salary (the income can not decrease and you need to have 2 years of steady employment);
- your credit rating (should be 620 or higher while the minimum score is 580);
- your last 2 years employers contacts;
- valid w2 forms;
- income tax form for 2 years;
- address for the last 2 years
It also should be mentioned that you should not have declared bankruptcy or have a foreclosure in the period of the last 3 years.
Finally, you need to have certain amount of means to pay the down payment on your loan (generally 3,5% of the total cost).
If you meet the above requirements, you can proceed with the application for the credit. The cooperating lenders of Personal Money Service will provide you with the most beneficial rates and terms of the mortgage, in accordance to your payment history and monthly income.
Read also our article Choosing a Mortgage: How Much Money to Borrow to define the amount you really need for the house purchase.