If you want to buy a home but you don’t think that you can afford the mortgage, you should consider applying for an affordable FHA Home Loan. The Federal Housing Administration insures this type of loan and it’s often less expensive than a mortgage through a bank or other lending institution. Below you’ll discover frequently asked questions about a housing loan through the FHA.
Q.) How much of a down payment will I need for a Federal Government Housing Loan?
A.) The minimum down payment for this type of loan is 3.5 percent of the total cost of the property. This amount is considerably lower than what’s required for loans from other sources. You may also qualify for a grant that assists home buyers with down payments from local or state government programs.
Q.) What are the qualifications for a home loan through the Federal Housing Administration?
A.) To be eligible for this loan, you must verify that you’ve been employed for at least two years. You must not have any overdue payments on a Federal loan or a previous FHA mortgage and you must meet the credit guidelines. The qualifying house must be your primary residence and the lender must be certified by the FHA.
Q.) Am I required to have perfect credit to qualify for FHA assistance?
A.) You’ll need a minimum credit score of at least 580 to qualify for a full FHA Loan. To qualify for 90 percent of the loan, your credit score cannot fall below 500 points.
Q.) Is it mandatory that I purchase mortgage insurance with a loan from the FHA?
A.) You must purchase two different types of insurance with this type of mortgage. You must pay the initial premium at the time of the loan and the second insurance premium is paid yearly or monthly. Even with the mandatory insurance, an inexpensive FHA Home Loan can save you money when you purchase a home.
If you’re in the market to purchase a home, Village Mortgage can help you find the right loan. Visit their website to find out if you qualify for a FHA Loan, VA Loan, FHA 203K Rehab Loan or if you’re eligible for refinancing.
Village Mortgage Company, NMLS #6331 CT #6331, RI #6331, ME #6331, Licensed Mortgage Lender NH #6331, Mortgage licensed lender in MA ML6331.For individual Village Mortgage branch location licenses please visit:www.nmlsconsumeraccess.org.Equal Housing Lender.