New homebuyers are approved for Federal Housing Administration (FHA) mortgage loans every year, and you could be one of them. The best way to find out if you’re eligible, is by contacting an approved lender like Ryan Harding from Security Home Mortgage near the Lehi, UT, area. We’re FHA approved lenders who can provide you with a detailed explanation and determine if this type of loan would benefit you. This type of loan is popular among first-time homebuyers because it’s designed to have the FHA step in to cover costs if the borrower defaults. It also offers applicants some flexibility as far as their credit score and how much they need to gather for their down payment. Learn more about FHA loans and the other benefits it offers future homeowners.
How Do You Get FHA Approved?
There are a few factors an FHA loan lender will consider when determining whether or not you qualify for a mortgage loan. One of the first requirements is for the borrower to have a low debt-to-income ratio along with a minimum credit score and a minimum down payment. Although you don’t have to meet as many requirements as conventional loans, there is a cap on how much you can borrow. FHA financing is usually limited to the median home prices in your area and this is regulated by the Department of Housing and Urban Development.
If you meet the criteria below, you may be approved by an FHA loan lender in Lehi, UT:
dditional Perks of FHA Loans:
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Less than 31% of gross income should be the mortgage, HOA fees and homeowners’ insurance
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Less than 43% of gross income should account for credit cards, loans other debts
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Minimum credit score of 580 with down payment of 3.5%
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Minimum credit score of 500-579 for a down payment of 10%
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House must meet minimum appraisal standards
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Social Security number, lawful residency or citizenship required
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Continuous employment for at least the past two years
What Makes FHA Loans Better?
FHA mortgage loans have unique perks that prove to be very beneficial for soon-to-be homeowners in Lehi, UT. If you’re searching for a home to buy, speak with an FHA approved lender for all the details you need to make an informed decision. These are some of the reasons FHA loans are often a better choice for borrowers:
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Down payment money can be gifted by family members
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Eligible for financing two or three years after bankruptcy or financial hardship
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FHA 203k program offers financing for home improvements and repairs
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Lower down payment requirement when compared to other loans
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No repayment penalties with FHA financing
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Thin credit-files or minor financial missteps don’t disqualify applicants
Contact Us for a Consultation
Ryan Harding is an FHA lender at Security Home Mortgage who can help you determine your eligibility and put together a strategy for your next big move. Consult with our professional lender at our offices near Lehi, UT, to learn more about FHA financing. Call us today at 801-228-0937 to schedule a meeting.
