FHA Mortgage Loan

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Not all will be eligible for an FHA mortgage loan – often referred to as a first-time home buyer’s loan. For example, if one has bad credit, applications are likely to be denied. Ultimately there are a few requirements that will need to be met before this particular type of loan can be considered.

Any type of home financing will undergo a tedious process like all other means of home financing. As a first-time home buyer, an individual is required to have at least two years of decent credit history. This means payments on time and an overall good score. Years ago, the minimum requirement was in the lower 500’s to 600’s. However now, most FHA loan mortgage agencies require a score of 620 to 640 or better. For some, this means waiting a little longer and of course, either living with relatives or renting a bit longer.

The goal is to own a home – at least for most, as long as the monthly payments meet the standard of the individual’s monthly income. These are just a few factors that are taken into account when determining eligibility. The waiting process, though enduring at times, is well worth the wait for the outcome.

The most vital steps to take to ensure that one has qualified for the FHA loan mortgage is, of course, to check with the agency on a frequent basis One must stay up to date on the status of their application as many are usually under processing at one time. When applying, a mortgage agent will not only help when credit is bad while reviewing the application but also help the applicant stay up to date on what needs to be done.

Before applying for an FHA mortgage loan, it’s honestly best to review your payment history. Bad credit can squash anyone’s chances of obtaining this loan even when they feel they are due for it. The first step is to obtain a copy of your credit report. Often, it’s surprising to see what is on there. Sometimes a person is an apparent victim of identity theft and just from that, it’s put them in a long-term bind in which they will have to file a paper form known as an identity theft affidavit. When this is the case it can take up to a year before the complete repair is provided, even when the individual has done nothing to negatively add to their score and history. This is unfortunate for first-time homebuyers who are seeking to get out of renting, which is inevitably today known as ”tossing money out the window”.

The upside to applying for an FHA mortgage loan, even when denied the first time is that it is and can be a learning experience. Over half of all applicants will be turned down. Credit is key when applying for a home loan. Any other sort of information provided that states otherwise is false. If denied, steps must be taken to repair credit, however, this can be done over time if persistent and serious about the home. Of course, the same home applied for may not always be up for sale, though with the way the real estate market is currently, homes are up for sale on the market by the dozens each month. There are always other alternatives if denied. Sticking with renting till approved may be the only way, at least for the remaining time until approved. Other obvious factors for approval include a job that has been maintained over a period of time, other stability, as well as other long-term stability factors included but not limited to, rental history in some cases – which can also affect credit. As one can easily notice without a shadow of a doubt, credit is important. Perks however include the tax credit, which all in all is considered a motivational factor to get one’s self on the right track for the home…and of course, the home itself.

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