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4 Keys to FHA Home Loans

Unlocking The Door To FHA Loan Approval

Follow these four simple tips to improve your chances of getting approved.

#1: Understand FHA Eligibility

Baseball, hot dogs, apple pie and FHA loans! FHA Eligibility is about as American as it gets. Since this is a U.S. Government-backed mortgage program, FHA requires that you live and work legally in the USA. You’ll need a valid Social Security number, so we’ll have you fill out form SSA-89. And, we’ll need to see some proof of residency. Finally, if you’re 18 or older you can sign a mortgage in most states. Read more about FHA loan eligibility athttps://www.ifreedomdirect.com/fha-loan/eligibility

#2: Recognize The Requirements For FHA Credit And Income Qualifying

FHA credit and income qualifying is not as intimidating as it may sound. In fact, it may be easier than conventional programs. And, low down payments are just the start! Here are some other benefits FHA borrowers enjoy:

  • 3.5% down payment minimum for most purchases
  • Up to 85% LTV on Cash Out refinances
  • FHA does not set a minimum credit score though lenders may have their own standards
  • DTI higher than 43% may be okay in some cases
  • Past Bankruptcies and Foreclosures handled to FHA and lender satisfaction may not preclude a loan approval.
  • You can read more on our FHA Loan FAQs page.

#3: Learn What Kinds Of Homes Fall Under FHA Minimum Property Standards

FHA Minimum Property Standards (MPS) exist to protect the homeowner and the government agency backing these loans. You can use FHA-insured loans to finance lots of different types of residential structures. And, FHA MPS provides peace-of-mind that the house meets some minimum durability requirements.

#4: Learn About FHA Down Payment Requirements

One of the most popular reasons that borrowers name for choosing this government-insured loan program is its very low down payment option. FHA down payment requirements are such that most borrowers need only 3.5% for purchases. Some conventional programs require as much as 20% or more. Borrowers should also understand that in addition to an FHA loan down payment, they will be charged upfront mortgage insurance UFMIP and annual MIP. The UFMIP can be rolled into the loan or paid in cash at closing with your down payment. Annual MIP is added to your monthly principal and interest payments. UFMIP and MIP can be reduced with bigger down payments. See our UFMIP and MIP rate table based on FHA guidelines by visiting our webpage onFHA Home Loans.

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