FHA loan requirement in EL Paso
An FHA mortgage loan is an insured loan by the government of U.S. it has enabled many prospective home buyers with credit scores issues, down payment and bankruptcy issues to secure a home. Despite nonexistence of stringentrestrictions, there are some requirements that prospective home buyers must meet to secure FHA mortgage loan.
Below are some of the hurdles borrowers must clear to obtain an FHA mortgage loan.
The prospective home buyer must satisfy proof of identification and show a reliable income. One or two latest paycheck stubs and recent tax returns are sufficient.
The buyer must accept the property appraised by FHA satisfied property appraiser. An FHA satisfied property appraiser is very technical people that have an insight on how to appraised the property to enable the home buyer to get a quality property that worth his or her money.
The borrower must have a minimum of 500 credit score with at least one caveat in situations where the borrower lacks credit score or non-traditional credit record. FHA can still approve the borrower,and to secure a 3.5% down payment mortgage loan, the credit score of the prospective home buyermust be more than 580. For instance, if the property worth $ 300000, the down payment has to be at least $ 10500.
If the borrowers have a bankruptcy record, they will be required to haveundergone through foreclosing for more than three years and to out of bankruptcy for more than two years.
The borrower cannot get approved for an FHA mortgage loan if he or she is lagging in income taxes or federal student loan taxes.Therefore, the borrowers should ensure that all income taxes are well updated
Lenders offering FHA mortgage loan must be approved by FHA. Lenders offering FHA mortgage loans are not the actual mortgage lenders. They partner with government satisfied mortgage lenders that must conform to specific requirement before accorded FHA loan status. Even though terms of mortgage loans from different lenders are matching. They can have different interest rates, cost fees, and underwriting practices
Only borrowers who intend tostay in the home are allowed to apply for FHA mortgage loan. The program deters investors who want to buy a property and rent for people to generate income.
Last but not least, the above are some of the requirement of FHA mortgage loan to be cleared or accepted by prospective borrowers or homebuyers to realize the full benefits of FHA loan. The requirement may appear stringent to most borrowers; there are no loan programs that lack some requirements that must be satisfied by the borrowers to realize the full benefits of the loan. This article is not the custodian of all the requirement of FHA home loan. Therefore, readers are encouraged to look for other sources that may also contain the requirements that have not been captured in this article.
FHA Loan El Paso TX
1900 N Oregon St #602
El Paso, TX 79902 United States
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