One of the first obstacles that many first-time home buyers and home buyers with lower income face, is the challenge of trying to obtain a conventional home loan. These individuals typically do not have the necessary credit score of 620 or above, or they may not have the 10 plus percent that is required for these types of mortgages.
To resolve this issue, the government created a program through the Federal Housing Administration or FHA that insures loans for first-time homeowners and qualifying low-income individuals. The loans provide lower down payments of as little as 3.5% as well as the ability to obtain the mortgage at that down payment with a credit score of 580 or greater. Individuals with credit scores of 500 to 579 can also apply, but they will require the 10% down payment.
If you have a steady income and are a legal U.S. resident and meet the criteria above, all you will need to do is determine where to apply for an FHA mortgage loan.
Important Factors In Where To Apply For An FHA Mortgage Loan
Only lenders approved by the Federal Housing Administration are allowed to process the FHA loan program. While it is possible that a local lender may be FHA approved, to get the best rates and to work with a lender of your choice, consider using an online company that matches the homeowner to the loan and the lender.
When deciding where to apply for an FHA mortgage loan, always look for a mortgage expert that has experience in the industry. The application process and the particulars of the loans you qualify for should be transparent, with customer service that is focused on providing information and education to allow consumers to make the best choice for their mortgage.
If you are looking for where to apply for an FHA mortgage loan, search no further than Guaranteed Rate.