My hubby and I worked with Julie to purchase our first home and it was awesome
We actually screened a bunch of lenders before we decided to work with Julie, and we are really happy we did the research. Julie kept the process simple for us.
Approximately 40% of all home loans in the US are through the Federal Housing Administration (FHA). FHA Loans are some of the easiest types of mortgage loans to qualify for because they require a low down payment and the borrower can have less-than-perfect credit.
2020 FHA Loan Requirements:
500 to 579 FICO score requirement* and 10% down payment OR 580 or above FICO score requirement with least a 3.5% downpayment
An appraisal must be done by an FHA approved appraiser
Mortgage insurance (MIP) usually around 0.85 percent of the loan amount annually
Steady employment with proven income with recent tax returns, W2’s, and paycheck stubs
Two years of employment at the same company
Must occupy the home as primary residence
At least 18 years of age
FHA Loan Advantages:
They are very popular for first-time home buyers because of their flexible qualifying guidelines and low down payments
Borrowers with credit scores as low as 500 can qualify for an FHA loan
Lower income borrowers are able to get approved for a home loan through the FHA due to the FHA allowing lenders more flexibility on debt to income ratios than conventional mortgages
Lower interest rates when compared with conventional loans, which can result in large net savings over the lifetime of a loan
Disadvantages:
Lower loan limits
Homes that need renovations do not qualify
Mortgage insurance is required and Mortgage insurance costs are higher upfront
More required paperwork
Also, take a look at FHA loan questions from other borrowers that we’ve helped. Hope this info helps and don’t forget, we’re here to help if you have any more questions.
PS Check out our simple eval process where you can choose whether you want to: get real rates specific for your scenario (beware of teaser rates!), see how much home you can afford, get pre-approved, or quickly submit your contact info so we can get back in touch.
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HQ: 555 W 5th St - 35th Floor Los Angeles, CA 90013 (310) 340-6606
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The Turnkey Foundation, Inc. d/b/a Arbor Financial Group is an Equal Housing Lender. In all jurisdictions, the principal {NMLS: 236669} licensed location is 2932 Daimler Street, Santa Ana, CA, 92705. {Julie Aragon MLO #250691}