Top 5 Questions about FHA Housing Loans

FHA housing loans are now considered as one the best ways to fix the financial and housing crisis in the US. Instituted during the depression era of the 1930s, the Federal Housing Association since then extended assistance to thousands of Americans who want to own a home the legal way without having to deal with skyrocketing monthly payments, down payments, and interest rates.

On the other hand, many are still left unaware about important features of this loan program. To ease your burning curiosity, here are the answers to the top 5 questions about the FHA program:

1. What are its prime benefits?
FHA mortgage has been instituted to help American citizens fulfill one of their basic rights: to have a home to call their own. It is perfect for first-time homebuyers and citizens who belong to the low-income bracket because this loan has the insurance of the Federal Housing Authority. This means that the mortgage would mean less risk for lenders, which makes its approval easier and faster. Lenders would not hesitate on approving this kind of mortgage since it has the backing and support of the housing authority itself.
FHA housing loans are also more affordable compared to conventional ones. You would pay lower down payments, monthly payments, and interests and most importantly, you have more protection and security from losing your homeownership.

2. Who can qualify for this loan?
If you have a stable monthly income for at least 3 years, a first-time home buyer, and can make the 3% monthly payment, you can qualify for this mortgage program.

3. Can someone with blemished credit history qualify?
The FHA programs is said to be the best options for those who want to own a home but has always been put down by private lenders because of a bad credit history. With this kind of loan insured by the government, even those with low FICO scores can qualify. It is also perfect for those who had previously faced bankruptcy because the Federal Housing Authority only requires a waiting period of two years after the filed bankruptcy. It also requires a waiting period of 3 years after foreclosure.  

4. What are the documents I need to apply?
Before being approved, the FHA would require much information about your loan application and financial status. You have to provide two-years worth of the following documents:
1.    Addresses where you have taken residences
2.    Address and names of your employers and companies that you have worked for.
3.    IRS Tax returns
4.    W-2Tax form
5.    A report of your monthly gross income

5. Once FHA housing loans have been approved, what could I get out of it?
If you have an approved FHA loan, you can already buy a home with lower monthly payments. Aside from that, you can either remodel your home or make some home repairs. In fact, it is deemed as one of the best ways to ensure homeownership preservation in the country.

Please bear in mind that knowing the basic about this program only means winning half your battle to own a home. Taking the problem sitting down would not merit you a home. Act now and process your request for an FHA loan.