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Requirements for FHA Loan

November 20th, 2012 11:04 AM by Nathan Rufty

People dream about having the best things in life. Sometimes there are some people who are able to get it because they have worked hard for it. Oftentimes, people are forced to lower their expectations a bit because the things that they aspire for are just too hard to reach. Still, having a house is one thing that a lot if not all people dream of. However, it can be a bit hard to purchase your own home because it is too expensive.

Even if people can purchase a house, what make it hard to maintain is the mortgages that would have to be paid for. This is probably the reason why a lot of people would like to apply for FHA. For those who are not too familiar with FHA, it stands for Federal Housing Administration. They are in charge of producing insurance for the mortgages of their approved members’ loans.

If you are also interested in applying for FHA, what would you need in order to be approved? Here are the things that you have to remember:

  • Credit performance score. - If you have problems with your credit card payments then you may want to improve your credit score if you would like to become approved for the FHA. Only those with good credit scores will be eligible for mortgage. This is important so that those who cannot pay on time will be sorted out. If you know that your credit score is low, you may be recommended to undergo a credit counseling program. This will improve your chances of getting approved for a loan.
  • Related to improving your credit score, you are discouraged from making any major purchase prior to applying for a VHA. It might make your credit score lower and will make it harder for you to become approved. Do not put yourself in a financial disadvantage.
  • Eliminate your debt entirely. - Your chances of being approved will surely improve if you do not have any outstanding debts prior to your application for a loan.
  • Information needed for the application. - Some of the things needed here are the following: Social Security number, address of your residence, monthly salary, and approximate value of all property. You may want to ask a loan officer or a staff member for all the requirements needed.

Do remember that there are some people who apply for VHA not because they would like to purchase a new house but because they would like to set up their homes for repairs. The important fact to remember is the FHA does not approve loans of just anybody. They would only approve loans of people who can pay for it. Also, there are specifications on the amounts that you can loan depending on all the information you are required to give regarding your payments and credit scores.

If you are not too sure about how you can improve your credit score and how you are going to eliminate your debt, you can always ask for help from financial planner. You can also ask your lender for advice regarding this matter.
Posted in:General
Posted by Nathan Rufty on November 20th, 2012 11:04 AM



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