Hawaii Mortgage Broker

How To Easily Qualify for an FHA Home Loan

An FHA home loan is a federal assistance mortgage issued by its namesake, the Federal Housing Authority. Today there is a lot of confusion about what the requirements are for qualifying for an FHA loan. Here is a simple breakdown of how to qualify for an FHA home mortgage.

FHA home loans cannot be taken out on investment property. You must being living in the home that you purchase. Once you have received the loan, this lot must become your permanent place of residence. Using the loan for mortgages on places other than your primary living space will disqualify you from receiving it.

In order to qualify for an FHA loan, the amount of your mortgage must be less than the maximum mortgage allowance in your specific area. Each amount is specific to your locality and is determined by your county. You can research this amount by calling your City Hall or current mortgage lender.

You must be steadily employed in order to receive funds from an FHA home loan. Proof of stable employment must be offered to the Federal Housing Authority before you can be approved for an FHA loan. If you have a less-than-full-time job or other form of inconsistent work, you must provide proof of consistent income in its place. However, this qualification can be iffy. It’s best to secure a steady job before you apply for an FHA home loan.

In order to receive the full loan, you must be able to put 3.5% of the total amount of the loan down. This down payment will help the FHA determine if you are qualified and responsible enough to receive the rest of the funds. This extremely low down payment makes FHA loans very popular. However, for those prospective homeowners with bad credit, a full 10% of the loan is required as a down payment. If you have bad credit, this may be the time to consolidate your current debts and try to raise your credit before applying for an FHA home loan.

So in the end, the steps to qualifying for an FHA home mortgage are relatively simple. If you are a prospective homeowner looking for a permanent home for you and your family and have a reasonably good credit score, you may be eligible for a home mortgage from the Federal Housing Authority. Call a provider nearest you and see if you can obtain a good home loan with a small down payment today. The house of your dreams could be so much closer than you imagine!