FHA Loans: Are You Eligible?

FHA Loans: Are You Eligible?

Collier Swecker video blogs about how FHA is raising the annual PMI rate is going up from 0.90% to 1.15%, an increase of nearly 28%. This increase will take effect on April 18, 2011 and will make the cost of an FHA loan more expensive on a monthly basis for borrowers. A typical 0000 FHA loan will cost approximately more per month. If you have any comments or questions about this FHA PMI increase, email me at Collier@MegaAgentRealEstate.com or visit my website at www.MegaAgentRealEstate.com.

http://laregionperdida.com/ FHA Loans Are About To Cost You More Per Month

Earlier this year, the Obama Administration came out with a program that would make refinancing less expensive for certain borrowers with mortgages backed by the Federal Housing Administration. But if you want to take advantage of ... After the housing ... Refinancing Your FHA Mortgage at Lower Cost

What makes FHA loans unique is the variety of benefits being offered by these loans, the major one being the option of making a 3.5 percent down payment. Since the time FHA loans were first introduced in 1965 with the formation of the Department of Housing and Urban Development, the Federal Housing Administration (FHA) has made a few changes which have made these loans more popular than it had ever been before. However to qualify for these loans one must meet a few requirements. Here in this article we will take a look at the various FHA loan qualification criteria.

FHA Loans: Qualification Criteria

Here are the basic qualification criteria one must meet in order to be eligible for FHA loans -

* Legal Resident - Only legal residents of United States can take advantage of these loans. However, citizenship is not required. You must also possess a valid Social Security Number and be of legal age for signing the mortgage.

* Debt to Income Ratio - To be eligible for these loans, your debt to income ratio should be in the 28 percent to 30 percent range.

This means that to qualify for FHA loans your total debt (i.e. including all payments on loans, cars, credit cards, child support etc.) should not exceed 28 percent to 30 percent of your gross income. This however doesn't include the housing costs.

* Credit Requirements - In order to qualify for these loans, you must fulfill the following credit requirements:

* Your credit report should have less than two 30-day late payments * Your credit report should exhibit good credit for the last two years

* No filing for bankruptcy in the past two years

* No foreclosures within the past three years along with good credit for the same period.

* Your payment history or record of bills.

* Ability to Repay - You should have the ability to pay back the mortgage in order to be eligible for these loans.

You must have at least two years of continued employment, preferably with the same employer and an increasing or consistent income over the past two years.

* Closing Costs - You must have enough funds available to be able to pay for the closing costs of the loan. Common sources of funds allowed to put up the required cash for the closing costs include gift funds, rental credit, home sale proceeds along with checking and savings accounts.

Once you fulfill these criteria you will be eligible for FHA loans.

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