Federal Housing Authority, or FHA, loans are excellent options for those who qualify. They provide advantages over traditional lending institutions as the government basically provides a certain guarantee to the lender who can therefore offer more appealing loan terms.
The beauty of FHA loans is that they were created in order to assist disadvantaged people acquire their own homes, especially in the cases of first time home buyers. The FHA, therefore, works with people with bad credit as long as you meet certain criteria.
Some of the advantages of applying for and acquiring an FHA loan are:
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There is no minimum requirement for credit scores
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Down payments are available which are less than 3% of the home’s sale price
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The FHA regulates closing costs on the property
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Options providing 100% financing are available
Bankruptcy or Foreclosure? No Problem
Even if you’ve experienced an unpleasant bankruptcy or foreclosure, the FHA will still work with you to provide a home loan. However, they stipulate that a bankruptcy ruling must be at least 2 years old and a foreclosure, 3 years old.
Once you meet the FHA’s guidelines, you can choose between an Adjustable Rate Mortgage (ARM), a 30-year fixed rate mortgage, or other mortgage products. Also, FHA mortgage options carry lower interest rates and down payment requirements which will save you thousands of dollars over the course of the loan.
Getting Started
If an FHA loan sounds like something you’re interested in, simply set up a meeting with your loan officer. They will look at your credit history, credit report and take such circumstances into consideration as job loss or transfer, divorce and serious illness.
Although there is no minimum requirement for your FICO score, understand that the size of the loan and certain other factors, such as a higher down payment and interest rates, are attached to those with very low credit scores. It is advisable to fix bad credit first which will ensure getting a better deal on an FHA mortgage loan.
Fix Bad Credit Scores
Before applying for your FHA loan, fix bad credit scores with the help of our credit repair professionals at repair-credit-today.com. Our experts will wipe away erroneous negative credit items as well as many which are outdated, have small amounts, or are questionable. It is even possible to eliminate bankruptcy and foreclosure items from a credit report.
Contact repair-credit-today.com and get the help you need to obtain the best deal possible on a brand new home.