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- Your Real Estate Team
- Advantages of Buying
- Preparing to Shop
- Applying for a Mortgage
- Making an Offer
- Inspections
- Insurance
- Closing the Deal
- After you buy
- Consumer Notice
- 2009 Tax Credit
- Reasons to Sell
- Financial Organization
- Preparing to sell
- You real estate team
- Listing Contracts
- Commisions
- Marketing your home
- Negotiating an offer
- Closing the Deal
- After you Sell
- Consumer Notice
Applying for a mortgage
Deciding which path to choose.
Conventional
FHA (Federal Housing Administration)
An FHA Loan is a mortgage loan insured by the Federal Housing Administration (FHA). The FHA does not provide the loan; rather, it insures the loan for the lender. If the borrower defaults, the lender can seek recourse from the FHA. This lowers the lender's risk and makes them more likely to issue a loan.
Benefits
Low mortgage rates
Down payments can be as low as 3% for a single family home.
The FHA can also help home buyers finance their closing costs, and even offers mortgage insurance.
As is customary with most loans, you'll need to qualify for an FHA loan by meeting specific requirements, including:
A good credit record;
Enough money for a down payment, which can be as low as 3 percent;
Total housing costs that are no more than 29 percent of your gross monthly income. Therefore, if your annual household income is $60,000, your housing costs, including principal, interest, property tax, and insurance, should not exceed $17,400, or $1,450 per month.
To obtain an FHA-insured loan, you need to find FHA-approved lenders and compare their loan offerings. Inquire about the income qualifications, which will vary by area. Also keep in mind that the maximum amount you can receive from FHA-insured mortgages varies from county to county, and from state to state. These mortgages are also subject to periodic improved adjustment, and that may be offered only in areas where residential real estate prices are high
What you will need:
- Addresses of Employers for past 2 years.
- Address and Account Numbers on All Debts.
- Three Month's Bank Statements/All Accounts.
- Most recent 30 Day's Paystubs and Last Two W-2's.
- Social Security Card and Picture ID. (FHA Only).
- If Self Employed - 2 Years' Tax Returns and Year-to-Date profit/loss and Balance sheet.
- Divorce Decree and Seperationg Papers.
- Landlord Addresses and Phone Numbers for 2 years.
- Copy of the Contract with Addendums.
- Personal Check for Appraisal and Credit Report.
- Certificate of Eligibility & DD214. (VA Only).