Why FHA Loans Are Best For First Time Home Buyers?
WHO CAN QUALIFY FOR FHA LOANS
anyone who meets the credit requirements, can afford the mortgage payments and cash investment, and who
plans to use the mortgaged property as a primary residence may apply for an FHA-insured loan.
HOW LARGE A DOWN PAYMENT DO I NEED WITH AN FHA LOAN?
You must have a down payment of at least 3% of the purchase price of the home. Most affordable loan programs
offered by private lenders require between a 3%-5% down payment, with a minimum of 3% coming directly from
the borrower's own funds.
HOW MUCH INCOME DO I NEED TO HAVE TO QUALIFY FOR AN FHA LOAN?
There is no minimum income requirement. But you must prove steady income for at least three years, and
demonstrate that you've consistently paid your bills on time.
WHAT QUALIFIES AS AN INCOME SOURCE FOR THE FHA?
Seasonal pay, child support, retirement pension payments, unemployment compensation, VA benefits, military
pay, Social Security income, alimony, and rent paid by family all qualify as income sources. Part-time pay,
overtime, and bonus pay also count as long as they are steady. Special savings plans-such as those set up by a
church or community association - qualify, too. Income type is not as important as income steadiness with the
FHA.
CAN I CARRY DEBT AND STILL QUALIFY FOR FHA LOANS?
Yes. Short-term debt doesn't count as long as it can be paid off within 10 months. And some regular expenses,
like child care costs, are not considered debt. Talk to your lender or real estate agent about meeting the FHA
debt-to-income ratio.
WHAT CAN I USE TO PAY THE DOWN PAYMENT AND CLOSING COSTS OF AN FHA LOAN?
Besides your own funds, you may use cash gifts or money from a private savings club. If you can do certain
repairs and improvements yourself, your labor may be used as part of a down 8 payment (called -sweat equity").
If you are doing a lease purchase, paying extra rent to the seller may also be considered the same as
accumulating cash.
HOW DOES MY CREDIT HISTORY IMPACT MY ABILITY TO QUALIFY?
The FHA is generally more flexible than conventional lenders in its qualifying guidelines. In fact, the FHA
allows you to re-establish credit if:
two years have passed since a bankruptcy has been discharged
all judgments have been paid
any outstanding tax liens have been satisfied or appropriate arrangements have been made to establish a
repayment plan with the IRS or state Department of Revenue
three years have passed since a foreclosure or a deed-in-lieu has been resolved
CAN I QUALIFY FOR AN FHA LOAN WITHOUT A CREDIT HISTORY?
Yes. If you prefer to pay debts in cash or are too young to have established credit, there are other ways to prove
your eligibility. Talk to your lender for details.
HOW DOES HUD HELP HOME BUYERS AND HOMEOWNERS?
HUD helps people by administering a variety of programs that develop and support affordable housing.
Specifically, HUD plays a large role in homeownership by making loans available for lower- and
moderate-income families through its FHA mortgage insurance program and its HUD Homes program. HUD
owns homes in many communities throughout the U.S. And offers them for sale at attractive prices and
economical terms. HUD also seeks to protect consumers through education, Fair Housing Laws, and housing
rehabilitation initiatives.
WHAT IS THE FHA?
Now an agency within HUD, the Federal Housing Administration was established in 1934 to advance
opportunities for Americans to own homes. By providing private lenders with mortgage insurance, the FHA
gives them the security they need to lend to first-time buyers who might not be able to qualify for conventional
loans. The FHA has helped more than 26 million Americans buy a home.
The FHA works to make homeownership a possibility for more Americans. With the FHA, you don't need
perfect credit or a high-paying job to qualify for a loan. The FHA also makes loans more accessible by requiring
smaller down payments than conventional loans. In fact, an FHA down payment could be as little as a few
months rent. And your monthly payments may not be much more than rent.
WHO CAN QUALIFY FOR FHA LOANS
anyone who meets the credit requirements, can afford the mortgage payments and cash investment, and who
plans to use the mortgaged property as a primary residence may apply for an FHA-insured loan.
HOW LARGE A DOWN PAYMENT DO I NEED WITH AN FHA LOAN?
You must have a down payment of at least 3% of the purchase price of the home. Most affordable loan programs
offered by private lenders require between a 3%-5% down payment, with a minimum of 3% coming directly from
the borrower's own funds.
HOW MUCH INCOME DO I NEED TO HAVE TO QUALIFY FOR AN FHA LOAN?
There is no minimum income requirement. But you must prove steady income for at least three years, and
demonstrate that you've consistently paid your bills on time.
WHAT QUALIFIES AS AN INCOME SOURCE FOR THE FHA?
Seasonal pay, child support, retirement pension payments, unemployment compensation, VA benefits, military
pay, Social Security income, alimony, and rent paid by family all qualify as income sources. Part-time pay,
overtime, and bonus pay also count as long as they are steady. Special savings plans-such as those set up by a
church or community association - qualify, too. Income type is not as important as income steadiness with the
FHA.
CAN I CARRY DEBT AND STILL QUALIFY FOR FHA LOANS?
Yes. Short-term debt doesn't count as long as it can be paid off within 10 months. And some regular expenses,
like child care costs, are not considered debt. Talk to your lender or real estate agent about meeting the FHA
debt-to-income ratio.
WHAT CAN I USE TO PAY THE DOWN PAYMENT AND CLOSING COSTS OF AN FHA LOAN?
Besides your own funds, you may use cash gifts or money from a private savings club. If you can do certain
repairs and improvements yourself, your labor may be used as part of a down 8 payment (called -sweat equity").
If you are doing a lease purchase, paying extra rent to the seller may also be considered the same as
accumulating cash.
HOW DOES MY CREDIT HISTORY IMPACT MY ABILITY TO QUALIFY?
The FHA is generally more flexible than conventional lenders in its qualifying guidelines. In fact, the FHA
allows you to re-establish credit if:
two years have passed since a bankruptcy has been discharged
all judgments have been paid
any outstanding tax liens have been satisfied or appropriate arrangements have been made to establish a
repayment plan with the IRS or state Department of Revenue
three years have passed since a foreclosure or a deed-in-lieu has been resolved
CAN I QUALIFY FOR AN FHA LOAN WITHOUT A CREDIT HISTORY?
Yes. If you prefer to pay debts in cash or are too young to have established credit, there are other ways to prove
your eligibility. Talk to your lender for details.
HOW DOES HUD HELP HOME BUYERS AND HOMEOWNERS?
HUD helps people by administering a variety of programs that develop and support affordable housing.
Specifically, HUD plays a large role in homeownership by making loans available for lower- and
moderate-income families through its FHA mortgage insurance program and its HUD Homes program. HUD
owns homes in many communities throughout the U.S. And offers them for sale at attractive prices and
economical terms. HUD also seeks to protect consumers through education, Fair Housing Laws, and housing
rehabilitation initiatives.
WHAT IS THE FHA?
Now an agency within HUD, the Federal Housing Administration was established in 1934 to advance
opportunities for Americans to own homes. By providing private lenders with mortgage insurance, the FHA
gives them the security they need to lend to first-time buyers who might not be able to qualify for conventional
loans. The FHA has helped more than 26 million Americans buy a home.
The FHA works to make homeownership a possibility for more Americans. With the FHA, you don't need
perfect credit or a high-paying job to qualify for a loan. The FHA also makes loans more accessible by requiring
smaller down payments than conventional loans. In fact, an FHA down payment could be as little as a few
months rent. And your monthly payments may not be much more than rent.
| David Zur 786-683-2444 Beachfront Realty Inc. 18205 Biscayne Blvd Suite 2205 Miami FL 33160 |
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מדבר עברית
David Zur Beachfront Realty Inc 18205 Biscayne Blvd Suite 2205 Aventura, FL 33160
Cell-786-683-2444 Fax-305-931-1004 DavidZur@bellsouth.net
Cell-786-683-2444 Fax-305-931-1004 DavidZur@bellsouth.net
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