| Federal Housing Administration, FHA Mortgage loans | | | | * You can get an FHA loan if you do not have a credit |
| are perfect for First Time Home Buyers. FHA and the | | | | score, but you have other credit accounts like a cell |
| loans it offers were created to help increase the | | | | phone, utility bills, cable bill where you can prove your |
| number of Americans who own their home. | | | | payment history for the past 6-12 months - you can |
| One of the great benefits of an FHA loan is that they | | | | prove your history with cancelled checks or with |
| are very flexible in their approval criteria which allows | | | | account printouts from the creditor for example |
| for an easier qualification process than other Fannie | | | | * You can qualify for an FHA mortgage 2 years after |
| Mae and Freddie Mac loan programs. | | | | your Chapter 7 Bankruptcy Discharge, and while you |
| Remember this rule of thumb: if you are employed and | | | | are in Chapter 13 as long as you making your |
| have kept good credit history for the past 12 months | | | | payments on time, and the trustee gives you |
| prior to when you want to get the loan then you have | | | | permission |
| a good shot at qualifying for an FHA home loan. | | | | * You can qualify to get an FHA loan 3 years after a |
| Benefits of getting a FHA Loan to buy a home | | | | foreclosure. |
| Low Down Payment and Closing Costs - One barrier | | | | Additional Features of FHA Loan Programs |
| for many people to buying a home is having enough | | | | * You can also buy a multi-family residential property |
| money for closing costs and the down payment. FHA | | | | that has up to 4 units if you plan to live in one of the |
| allows for less money to come out of your pocket. | | | | units. You can use the rent income from the other units |
| * Less than 3% of Sales Price is required for down | | | | to help offset the cost of the mortgage payment |
| payment | | | | when you qualify for the loan. |
| * There are some 100% financing options | | | | * You may only have one FHA loan at a time. |
| * You can get a gift from a family member for all of | | | | * There are special loan programs available if you are: |
| your down payment and closing costs | | | | a teacher, a law enforcement officer, buying a HUD |
| * The seller can give you a credit of a maximum of | | | | repossessed home, a first time home buyer in |
| 6% of the sales price towards your closing costs and | | | | California, buying a home that needs home |
| down payment. If you get this option, you still have to | | | | improvements. |
| show that you have the required down payment | | | | * You can also buy a home using the Nehemiah or |
| money in the bank or as a gift (this is a huge benefit in | | | | Ameridream 100% gift financing option. If you can |
| a real estate buyer's market like 2008) | | | | negotiate with the seller to give you 6% towards your |
| Easier Credit Qualifying Guidelines - When it comes to | | | | closing costs and down payment then these programs |
| getting a regular Freddie Mac or Fannie Mae | | | | turn some of that money into a gift which eliminates |
| mortgage, credit can be a huge stopping point for | | | | your need to have 3% of your own money in the |
| anyone who has had any type of credit problem within | | | | bank to qualify. This is another great program for First |
| the past 24 months. FHA understands that people | | | | Time Home Buyers. |
| have things that come up and it believes that a bump | | | | If you are buying a home it is a good idea for you to |
| in the credit road should not prevent you from owning | | | | speak with a loan officer who specializes in FHA loans. |
| a home. Here are some of the flexible guidelines from | | | | Knowing this information before you begin your home |
| FHA about your credit. | | | | buying process with a real estate agent can save you |
| * Most FHA lenders want to see FICO scores of 550 | | | | a lot of time, energy and yes - money! |
| or higher to qualify you | | | | |