FHA Loans
FHA loans allow individuals who may not qualify for a conventional mortgage obtain a loan, especially first time home buyers.
FHA Loans
FHA home loans are mortgage loans that are insured against default by the Federal Housing Administration (FHA). FHA loans are available for single family and multifamily homes. These home loans allow banks to continuously issue loans without much risk or capital requirements. The FHA doesn't issue loans or set interest rates, it just guarantees against default. FHA loans allow individuals who may not qualify for a conventional mortgage obtain a loan, especially first time home buyers. These loans offer low minimum down payments, reasonable credit expectations, and flexible income requirements.
What is an FHA Loan?
In 1934, the Federal Housing Administration (FHA) was established to improve housing standards and to provide an adequate home financing system with mortgage insurance. Now families that may have otherwise been excluded from the housing market could finally buy their dream home. FHA does not make home loans, it insures a loan; should a homebuyer default, the lender is paid from the insurance fund. Buy a house with as little as 3.5% down. Ideal for the first-time homebuyers unable to make larger down payments. The right mortgage solution for those who may not qualify for a conventional loan. Down payment assistance programs can be added to a FHA Loan for additional down payment and/or closing cost savings.
Documents Needed for FHA Loans
Your loan approval depends 100% on the documentation that you provide at the time of application. You will need to give accurate information on: Employment Complete Income Tax Returns for past 2-years W-2 & 1099 Statements for past 2-years Pay-Check Stubs for past 2-months Self-Employed Income Tax Returns and YTD Profit & Loss Statements for past 3-years for self-employed borrowers Savings Complete bank statements for all accounts for past 3-months Recent account statements for retirement, 401k, Mutual Funds, Money Market, Stocks, etc. Credit Recent bills & statements indicating account numbers and minimum payments Landlord's name, address, telephone number, or 12- months cancelled rent checks Recent utility bills to supplement thin credit Bankruptcy & Discharge Papers if applicable 12-months cancelled checks written by someone you co-signed for to get a mortgage, car, or credit card, this indicates that you are not the one making the payments. Personal Drivers License Social Security Card Any Divorce, Palimony or Alimony or Child Support papers Green Card or Work Permit if applicable Any homeownership papers Refinancing or Own Rental Property Note & Deed from any Current Loan Property Tax Bill Hazard Homeowners Insurance Policy A Payment Coupon for Current Mortgage Rental Agreements for a Multi-Unit Property
What can I afford?
Your monthly costs should not exceed 29% of your gross monthly income for a FHA Loan. Total housing costs often lumped together are referred to as PITI. P = Principal I = Interest T = Taxes I = Insurance Examples: Monthly Income x .29 = Maximum PITI $3,000 x .29 = $870 Maximum PITI Your total monthly costs, or debt to income (DTI) adding PITI and long-term debt like car loans or credit cards, should not exceed 41% of your gross monthly income. Monthly Income x .41 = Maximum Total Monthly Costs $3,000 x .41 = $1230 $1,230 total - $870 PITI = $360 Allowed for Monthly Long Term Debt FHA Loan ratios are more lenient than a typical conventional loan.
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365 Lending, LLC
P: (833) 382 – 3338 F: (248) 382 – 3338
E: Info@365-Lending.com
6230 Orchard Lake Rd, STE 115 West Bloomfield, MI 48322 USA
NMLS # 2318316
Complaints may be directed to: Phone: (833) 382 - 3338 or Email: help@365-lending.com
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. © Copyright 2020, 365 Lending, LLC. NMLS #: 2318316. All rights reserved.