With the prices of homes across Corpus Christi continue to skyrocket at astonishing speed with each passing day; the demand for home loan program has increased as people seek to fulfill their American dream of owning a home in the city. This being the case therefore, you need to put yourself abreast from other home loan borrowers, if you are to qualify for the FHA home loan. This home loan program is backed by the government through the Federal Housing Administration. This home loan program is specifically popular due to its lenient guidelines. Below are some of the guidelines that you must surpass in order to qualify for the home loan. Credit Score By now you should have known that your credit score speaks volumes about whether you qualify for the FHA home loan or not, as it is the parameter that lenders looks for when determining whether you qualify for the home loan or not. This being the case therefore, it is incumbent upon you to ensure that you improve your credit score, so as to increase your chances of qualification. The minimum credit score that you can have for the FHA home loan is 500. Down Payment Majority of the home loans available in the market requires that you must pay a certain amount of money, as down payment. This is so as to prove to your FHA home loan lender that you are serious in applying for a home loan. When applying for the FHA home loan, the minimum down payment that you can pay is 3.5% of the amount of money that you are applying for. That is why you need to save in advance, in order to avoid hitches with your application. Debt to income ratio So as to qualify for a home loan program in Corpus Christi, you will need to have a manageable debt. No lender will bombard you with additional debts while you have been unable to service your existing home loans. Your debt to income ratio is therefore the amount of debts that you have when compared to your income. The maximum debt to income ratio that you can have when applying for the FHA home loan is 43%. Source of income For a FHA home loan lender to offer you with the loan, you must assure them that you can be able to service the home loan without any hitches. This being the case therefore, there is no better to hack this than having a stable source of income, where you will be getting the money to service your FHA home loan in earnest. That is why your lender asks for your federal tax returns and W-2 statements.
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