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| Finance Manufactured, Modular, Mobile Home Loans Main Benefits of FHA Mortgages Since 1934, the Federal Housing Administration (FHA) has helped American homeowners afford more than 35 million properties. You could be next! Let our qualified loan professionals help you with this decision. In this time of tightening credit guidelines for home mortgages, FHA loans are more popular than ever. FHA guidelines are designed to offer more flexibility for evaluating individual borrowers. If you don't have much money for a down payment, or if your credit history has a few blemishes, then maybe an FHA Loan is right for you. You can borrow almost 97% of the value of a home. You'll have to come up with at least a 3.5% down payment, but some money can come from gifts or grants. That means people with moderate incomes or who are first-time homebuyers may have a better shot at meeting FHA guidelines. There is no minimum credit score requirement, but people with really bad credit may be denied a loan. Having a 600 score or higher will make you a more serious contender to get approved. You also won't be automatically disqualified if you have a foreclosure, bankruptcy, or short sale in your past. Lenders may consider approving a loan if it's been at least three years since a foreclosure or short sale and at least one year since a bankruptcy filing--depending on the circumstances of the filing and that you prove that you've managed your finances responsibly since those negative events. People who are self-employed may qualify for an FHA mortgage if they have tax returns for the previous two years, a current balance sheet, and a profit and loss statement. People who've been self-employed for a year could qualify if they had a stable employment history the previous two years and still work in the same field. |
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