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FHA mortgage loan program has minimal down payment and closing costs. The credit qualifying guidelines and the income and job requirements are flexible and it does not require a minimum FICO score or any other credit score. The debt ratio is higher in this program when compared to conventional loans. The FHA loan program also allows almost 100% of the borrower's funds to come in the form of a gift. Two or more borrowers, or co-borrowers, can finance a house under this scheme. There are also other loan programs like down payment assistance and mortgage refinance programs. The mortgage brokers also offer as many as four free quotes in order to entice the borrowers. The federal government and the state entities have developed many FHA loan programs for the low-income people so that they are able to purchase a home with low down payment. The borrower has to select the best loan program after taking into account the rate of interest, source of funding and the monthly payments. A person should have a good credit background to qualify for the low down payment. The free personalized rate quotes offered by the lenders also benefits the borrowers in selecting the best program.

Guidelines to qualify for an FHA mortgage loan program:

· Two years of steady employment under the same employer, preferably
· The borrower's income must be stable or increasing
· The borrower cannot have more than one Federal insured loan at a time
· Bankruptcy must be at least 2 years old with good credit since
· Foreclosure must be at least 3 years old with good credit since
· The new mortgage payment should be approximately 30% of gross income

Under the guidelines, the borrower can spend up to 41% of monthly income on housing and other debts. When the borrower submits the required qualification information, the underwriter reviews the information to make sure it confirms to the guidelines. The following information is reviewed:

· Income and Debt ratios
· Employment History
· Credit History
· Savings / Source of money for down payment
· Appraisal

Once the underwriter has reviewed them, they will issue a writing decision. The decision could be an approval, suspension or denial of the mortgage.

· Approved-meets required guidelines for final approval
· Suspended-additional documentation is needed
· Denied-does not conform to guidelines

The following are the guidelines for an FHA mortgage loan program for single-family homes:

· The mortgage loan is for owner occupied homes only
· The following are the allowable property types:
        - Single Family Real Estate Homes (SFR)
        - Approved condominium complexes (must be in HUD approved projects)
        - Public Urban Developments (must be in HUD approved projects)

There is a maximum mortgage loan amount for this type of property. If the homebuyer has another Federal mortgage loan, it must be at a LTV of more than 75% of the current value of the home. The borrower may own other rental property that is not financed by a Federal Housing Administration mortgage loan and still use this loan to purchase a primary residence.

HOW CAN YOU GET QUALIFIED?

1) Click here to fill out a Good Faith Estimate.

Now we may get you approved and give you a detailed estimate showing the interest rate offered, the loan amount, the estimated monthly payment, all of the costs of the loan and what they are for, and how much money you will need to close.