fha loan qualifications
Learning More About The Federal Housing Administration Loans
The Federal Housing Administration, also known as FHA provides mortgage insurance on loans made by lenders who are FHA approved. This insurance provides the lender with protection for losses when a homeowner defaults on their loan. Many are interested in learning more about fha loan qualifications. One will need a checklist for all of the important documents that are needed to secure this type of loan. These documents include items such as a social security card, current pay stubs from a place of employment, tax returns and several other important items. One will also need to pay for a credit check and an appraisal of the home they are wishing to purchase.
The amount that can be borrowed is based on income and debt to income ratio. It is also very important to have credit issues taken care of because a good credit rating is required in order to be approved for this type of loan. Poor credit scores can lead to the loan being denied, so it is extremely important to obtain a copy of a credit report and to take care of anything negative that may appear on it. Credit scores also help to determine the interest rate of the loan.
Many wonder what is an fha loan? It is simply a loan that is insured by the FHA that protects the FHA approved lender should the home buyer default on their loan. This is necessary when purchasing a home and it is something that is required. There is a wealth of great information available about this very topic available at the FHA website. An approved lender can also answer any questions pertaining to this subject.
More people are purchasing homes than ever before and it is important to make sure that all bases are covered when applying for a loan. Good credit is required and it is important to take care of any negative marks on the credit report. One should be working on increasing their score before they ever even apply for a loan in order to have a much better chance of the loan being approved for the home.