Those who are having difficulty qualifying for a traditional loan may be eligible for assistance from the Federal Housing Administration (FHA). Here are some FHA loan FAQs that we think you’ll find helpful:
How does an FHA loan work?
The FHA is only an insurer, and does not approve loans. Instead, the agency guarantees loans from approved providers. They often require less money down, making it possible for people who would not ordinarily qualify for a mortgage to purchase a home.
Can I qualify if I have less than perfect credit?
In many cases, yes. FHA loans are typically easier to qualify for, so you may be eligible even if you have filed bankruptcy in the past or have other credit problems.
How much am I required to put down?
Most loans require only 3.5% down, as opposed to the 10% or 20% required by traditional loans.
What type of home can I purchase with an FHA loan?
An FHA loan can be used to purchase a single family home, 2-4 unit property, condominium, or manufactured home placed on a permanent foundation.
Can an FHA loan be used to refinance my existing home?
Yes, so long as your home meets the above qualifications.
Does the home need to meet any particular requirements?
Yes, the home must have an adequate supply of safe water, a sanitary method of sewage disposal, at least one full bath, heat, hot water, and electricity. Although there is no minimum square footage required, the home must nonetheless contain “adequate space for healthful and comfortable living conditions.”
Here at Starboard Financial, we strive to make the home buying process as easy as possible. Please contact us if you would like more information on any of the loan products we offer. We are here to help you get things done – The Right Way!