Anonymous asked in Business & FinanceCredit · 1 decade ago

FHA Loan?????

Can someone please tell me what a FHA loan is and what does that mean?

3 Answers

  • Anonymous
    1 decade ago
    Favorite Answer

    FHA is one of only 3 ways to borrow 100% of the $ for a house (VA and USDA rural housing are the others).

    They each have a set of guidelines for how much $ they will lend you based on your income/assets/credit.

    You will need a 620 mid-score (though down to 550 is possible). Your mortgage payment (PITI + MI), HOA fees, credit card and car payments will need to add up to no more than ~45% of your gross monthly income. The seller can "gift" you your 3% down out of their equity and you can negotiate them paying your closing costs too.

    Sit down with a mortgage professional with your paystubs/W-2s/tax returns/bank statements. A pro will be able to tell you within a few minutes how much house you qualify for. Then you can go and put an offer in on house knowing that your loan will close.

    I closed a handful of FHA purchases this month. Each one came out of pocket $1000-$2000 total (appraisal fee, credit, home inspector, earnest $), AND they walked into equity in their new place. I love my work... we build peoples' wealth!

    Best of luck to you!

    Source(s): Mortgage professional.
    • Commenter avatarLogin to reply the answers
  • 1 decade ago

    The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.

    Low down payments

    Low closing costs

    Easy credit qualifying

    Your down payment can be as low as 3% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.

    FHA has a loan that allows you to buy a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs - all in one loan.

    This is just a start on it. There are funding limits varried by state and county.

    If you are in WA state, send me a message.

    • Commenter avatarLogin to reply the answers
  • Steveo
    Lv 5
    1 decade ago

    I'm doing a refi on a house right now, and it came in at 5.5%. Another plus is that your bank cannot require you to be penalized for a refi with another lending institution.

    • Commenter avatarLogin to reply the answers
Still have questions? Get your answers by asking now.