How hard is it to get approved for a housing FHA loan?
With the housing market right now the way it is. Is this even possible because it seems like you have to have perfect credit. This would be for a first time buyer that is looking at a house that is around 350k. Is this even possible? The credit history is excellent but the score is low. That's due to only having one credit card and have never been late and the card is currently paid off. Thanks ahead of time!
- Anonymous1 decade agoBest Answer
It's not that hard to get approved for a loan, for anyone who works for a living, and hasn't gone out of their way to ruin their credit.
The question is how much of a loan will they offer you.
Don't expect to get approved for a loan in which the monthly cost (mortage, property tax, and home owners insurance) exceeds 28% of your gross income.
Here is a link to a mortgage calculator to figure out what the payments, and loans amount works out to be.
- DMLv 41 decade ago
I suggest having the home buyer write a letter explaining the situation. Some lenders will take that into consideration.
Make sure that all payments including rent/mortgage ave been paid on time for at least the last 3 years.
You say a good credit history so I'm assuming you have a copy of the credit report. If so make sure their have been no collections, judgments, or mistakes on it. If there are errors correct them.
As far as FHA the house must qualify and some older homes sometimes do not. Also income-to-debt ratio and credit scores also come into play.
There are still FHA loans to be had if you qualify. If not look into conventional loans. Down payments start as low as 5% and the seller can contribute in most cases up to 3% towards the buyers closing costs.
The homebuyer may also look at homes for less money or improve their credit score before buying.
In most cases it is always suggested you have at least three lines of credit and make all payments on time. This improves your credit score. Also leaving room on your credit limits. It does not look good if you are at your credit limit on everything.
Hope this helps.
- Anonymous1 decade ago
all depends on the lender you choose