How They Work
At America’s Funding Group, LLC we want to help you understand the basic functions of how a FHA mortgage loan works. Truth be told, the Federal Housing Administration (FHA) doesn’t loan any money, they insure it. This means that you’re considered to be a less risky borrower than someone who might not have the support of the federal government. Our job is to ensure you qualify for an FHA mortgage loan and structure our loan to reflect it.
The other pages in the FHA loan center can enable you to understand more about this unique program. Whether you are trying to determine if you qualify or if you are interested in discovering what kind of documentation you’ll need to ultimately receive your loan, our site can provide you the information you are after. For additional information, we’re more than happy to take your phone calls at ********.
A crucial resource for considering a FHA loan is the official Housing and Urban Development website. There you can find even more answers to questions and learn more about insuring your loan through the Federal Housing Administration.
FHA insured mortgages are some of the best kinds of home loans accessible. This is because they can help more individuals step foot into the home buying market.
Easier to Qualify for – because they’re backed by the federal government lenders are more inquired to give you the type of loan that you require.
Low Down Payment – FHA insured mortgages only require a 3% down-payment. This makes it easier for people to own homes. Additionally, the 3% can come in the form of grants, unlike many other loan programs.
Lower Credit Borrowers Qualify – because FHA insured loans are backed by the government those with a poor credit history have an easier time acquiring this type of loan.
Better Interest Rates – with the backing of the government these loans generally have a better interest rate than most traditional mortgage loans.
Better Home Stability – the FHA has programs designed to help homeowners keep their homes during hard times. Their goal is to help prevent your home from falling into foreclosure. Always try to work out problems with your lender before the situation becomes dire.
It’s simple to understand why numerous individuals searching for a new home are resorting to FHA insured loan programs. Because FHA Loans are insured by the Federal Housing Administration homebuyers have a simpler time qualifying for a mortgage. Those who usually benefit most from an FHA loan are first-time home buyers and those who have less than perfect credit.
Considering the growing housing situation in the United States the loan limits for FHA Loans has been temporarily raised. Contingent upon where you live you might find it significantly easier to qualify for a FHA loan. As FHA Loan specialists we can help you understand any new changes to the FHA loan program. We’re here to create a customized solution that works best for you and your family.
Qualifying for a home mortgage loan can be difficult, near impossible without a sizable down payment and a moderate credit report. If this describes you and your financial position, an FHA loan may be for you! There are fewer restrictions for FHA loan qualification in comparison to a standard mortgage loan. Qualifications for an FHA loan are:
- Proven employment status of at least 2 years.
- Steady or increasing income over a 2-year period.
- History of on-time payment. No more than two missed payments on your credit.
- If you’ve filed for bankruptcy you must wait at least 2 years and have good credit since you filed.
- Those with foreclosures must wait at least 3 years since the most recent foreclosure.
- Monthly mortgage payment should be roughly 30% of your gross income.
- You must pay a minimum of a 3% down-payment.
- Agree to 2.25% in closing costs
- Only certain properties are eligible – single-family homes, condominiums, double-wide manufactured homes, modular homes and 2-4-unit properties.
- The property must be your primary residence.
When you’re applying for an FHA loan the following list of documents you will need will help expedite the process. We can help you understand any part of the FHA loan process so there is no need to hesitate to contact us with any questions.
- Past two years completed tax returns.
- Past two years W-2’s, 1099’s and any other necessary tax forms.
- One-month worth of newest pay stubs.
- Self-employed will need three years tax returns and YTD Profit & Loss Statement.
- Past three months full bank statements for all accounts.
- Any recent statements from investment accounts (retirement, 410k, mutual funds, etc.).
- Driver’s License or other official State identification.
- Social Security Card.
- Any Divorce, Palimony, Alimony Documents.
- Green card or work-permit (if applicable).