Do you qualify for an FHA loan?

Are you, or is someone you know:
- a first-time home-buyer?
- looking to buy a home in need of repairs?
- looking to refinance an existing home that’s in need of repairs?
- looking to buy a home but is earning low-to-moderate income?

You may be a candidate for an FHA loan and if you are, chances are you could benefit.

Simply put, an FHA loan is a loan insured against default by the FHA (Federal Housing Administration). Why would the FHA insure loans for people to buy homes? Their goal is to promote home ownership. And they’ve made it easy -- the guidelines for qualifying are straightforward. And you will not be working with the FHA directly. Your mortgage broker or loan officer handles all of that for you.

Typically, FHA loans are designed for low-to-moderate income borrowers, including those with homes that may be located in disadvantaged neighborhoods or federal disaster areas, FHA loans can be a viable option for first-time borrowers and for borrowers seeking to refinance. Here are some features of these programs:

* Down payment as low as 3.5% of the sale price
* Maximum qualifying ratios 31/43% (these are your debt-to-income ratios)
* Fixed and adjustable-rate mortgages available
* Purchase, rate/term refinances, cash-out refinances and streamlined refinances

If any of the following situations match you, it’s worth the phone call to find out if you qualify for an FHA Loan:

* Have low-to-moderate income
* Live in a disadvantaged neighborhood
* Have a home or are interested in purchasing a property that needs repairs
* Lost their home in a federally declared disaster
* Are first-time homebuyers

You may or may not qualify or need an FHA loan. But if you do, it can give you important advantages. Consider a first-time homebuyer who may not have a great deal of money for a downpayment. An FHA loan may make the difference between qualifying for a home mortgage altogether since there’s a much smaller down payment requirement than there is with a conventional loan.

And there is no guarantee that these programs will be around for long! So if you think you may qualify or know of someone who didn’t qualify under a conventional loan program, call your mortgage broker or loan officer today.