What is an FHA loan compared to other mortgage company loans.?
My mortgage company is getting me an FHA loan. Why? How do I qualify for an FHA loan.?
- loanmasteroneLv 71 decade agoFavorite Answer
FHA loans are some what easier to qualify for as they are guaranteed by the federal government. They are also don't require a high credit score as most conventional mortgage loans.
The down payment is also lower. The down payment could be as low as 3.5% as oppose to 10%-20% down for a conventional mortgage loan.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.
Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.
He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.
When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.
Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.
If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.
You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.
Make sure your mortgage broker explain all your options so you may make an intelligent decision.
What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.
So select the best option for you and your financial situation.
You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.
Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.
I hope this has been of some use to you, good luck
- Anonymous6 years ago
A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.Source(s): http://kaikki-pikavipit.fi
- 1 decade ago
Mortgage loan is a term used for the loans secured by a property. Mortgage loans refer to a loan secured by residential property, often for the purpose of securing real estate. Mortgage loans are priced lower than other loan structures because the value of the property risk for the lender.
A fixed rate mortgage loan has its own benefit. If the borrower is budget conscious, he will remain at peace because the monthly mortgage amount will not change.Fixed rate mortgage loan is a loan where the interest rate remains the same through the term of the loan. Fixed rate mortgage loans are the most traditional form of loan.
- Anonymous6 years ago
Please contact us for your secure and unsecured Loan at an Interest rate of 3%
Is the difficulty of the economy affecting you this year, is your bank refuses to give you a loan
for this month ? If your answer is yes, then you need a loan. I'm Lee Chan, the owner of a
lending company We offer safe and secure loans at an interest rate of 3%.
* Are you financially squeezed?
* Do you seek funds to pay off credits and debts?
* Do you seek finance to set up your own business?
* Are you in need of private or business loans for various purposes?
* Do you seek loans to carry out large projects?
If you have any of the above problems, we can be of assistance to you but I want you to understand
that we give out loans at the interest rate of 3%.
* Borrow anything up to $100,000,000 USD.
* Choose between 1 to 30 years to repay.
* Choose between Monthly and Annual repayments Plan.
* Flexible Loan Terms.
Please if you are interested check back with us through this email
We promise a 100% guarantee that you will receive your loan at the end of this loan
transaction.There is no security check, no credit check
LEE CHAN FINANCIAL SERVICE
- How do you think about the answers? You can sign in to vote the answer.
- Kathrina Teebo KLv 53 years ago
I suggest to you to not take a loan assuming that you honestly do not need to. It is usually very expensive financial choice which you might regret eventually, however in case you honestly need to, google zerbite loans finder. It worked for me.