How do you qualify for an FHA loan?

laurafrost82 · Joined: 10 Mar 2009 Posts: 6 3.38 Dollars($)

I have a fairly good credit score (690) and am in the market to purchase a condo. What type of mortages should I consider? Why should I choose an FHA loan over other types?

Laura

laurafrost82 · Joined: 10 Mar 2009 Posts: 6 3.38 Dollars($)

I'm not in the market for a mortgage quite yet. I am looking about 6-9 months in the future. I just wanted a quick overview of what there would be avaliable for me.

Thanks

jameshogg · Posted: Tue Mar 10, 2009 11:39 pm Post subject:

Hi laurafrost,

FHA loans are best suited for first time home buyers. Moreover, FHA lenders offer lower rates as compared to conventional mortgages. FHA loans are available even at a credit score of 580 provided you do not have late payments or collections in your credit score. If you are unable to give the required down payment, then the mortgage insurance payments for FHA loans are also low.

However, I would suggest you to check out both FHA loans and conventional loans. This will help you to know what kind of rates are being offered now-a-days and thus you will be able to select the one you can afford. You can also speak to the lenders of this community and get a no obligation free consultation. This will help you to know the rates and terms you can get when you apply for a loan.

Thanks

msnover92571 · Posted: Wed Mar 11, 2009 7:07 am Post subject:

Hi laura yes FHA is a very good choice at the moment but ive heard it has been bumped up to 620 score instead of 580

Guest

While all mortgage lenders can desribe the difference between FHA mortgages and conventional and other mortgages, you may get better advice if you can note what in state the condo would be located.

Some states are in severe declining markets and condominium purchases require larger down payments and in some states down payments of 20% or 25% are required. Down payments less than 20% require private mortgage insurance and that is very restrictive for condominium purchases.

FHA loans are often best for down payments less than 20% these days. With condominiums there are some concerns with whether or not the condominium project is FHA approved 9that would be ideal). If not, an FHA spot approval may be possible. Be careful with new versus established condominiums. New condo projetcs may have sold and presale requirements, which means before you could close a certain number of sales would have to be done.

Not sure if you are a first time buyer. To get the $8,000 tax credit, your closing has to take place on or before Dec 1, 2009. If you close after that, you simply lose $8,000.

Posted: Wed Mar 11, 2009 10:03 am Post subject:

Thanks! The condo is in Nevada. It is a short sale. I do have the 20% down, I didn't realize that it would make a difference.

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