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What Should People Know About Federal Housing Administration Loans?
An FHA loan is one that is backed by the federal government and allows people to purchase a home as long as they meet certain requirements. It is important applicants know what to expect from the process so they can be prepared. The more knowledgeable a person is about the process, the better prepared they will be to make sure they meet all of the requirements so they can avoid delays.
There are a few requirements that must be met for this loan type:
The applicant must have a credit score of at least 580
Must have a steady job where they have worked at least two years
Must have a valid social security number and be a citizen of the US
Must be prepared to pay a downpayment of at least 3.5%
The home being purchased must be the applicant's primary residence
The property appraisal must be conducted by an FHA approved appraiser
To ensure an applicant meets all of these requirements, it behooves them to meet with a loan expert so their needs can be determined. A loan expert will assist the applicant in filling out all the necessary paperwork and verification documents to ensure the process can progress as smoothly and efficiently as possible. The loan expert will remain in contact with the applicant to inform them of how the application process is progressing.
Today, these loans are most popular among those who are first-time home buyers. The requirements for these loans are less strict than others so people are more likely to be approved. Although people with lower credit scores can still be approved for these loans, it is important to note the lower the credit score, the higher the interest rates a person will be charged.
Those borrowers who do not have the funds to come up with twenty percent down for a traditional loan should consider their FHA options. For more information, contact PrimeLending Amelia Island. They will be happy to help you through every step of the process so you can be approved for your home loan. Call them today to get started so you can soon be in your own home.