FHA loans

There are loan limits for fha insured mortgages and your debt to income ratio should be within specified set limit. The good thing is that you can get a loan by making a 3% downpayment instead of 20%.

Hi Xmljar,

Welcome to Mortgagefit discussion board.

"Does income play a role?"

There is no set standard income requirement that you should have to qualify but it should be such that you are able to pay your debts.

You can go through this page for more information about the basic qualifying requirements for fha loans - http://www.mortgagefit.com/discuss/qualifyfor-fhaloan.html#requirements

Do let me know if you have any other questions.

Thanks
Blue

Hi Xmljar,

Welcome to forums.

FHA loans are the ones that you can qualify for by making down payment as low as 3% of the home purchase price. Lenders providing such loans do not take into account your credit score but they do consider your income and liabilities. They may require you to have less income compared to conventional loans in order to qualify for FHA loans. Usually your debt-to-income ratio in case of FHA loans should be 29/41.

As you have mentioned, if it is possible for you to put down 20% of the purchase price, then that's a good thing indeed. It will help you to get a reasonable interest rate also.

Thanks

'Can you put 20% down and still qualify?"

There is no maximum down payment limit but at least 3% down payment is to be made. If you want to, then there is no problem with putting 20% down.






Johan van Benthem

get more information on fha loans from here - http://www.hud.gov/buying/loans.cfm

hey check this site you will be clear "www.fharesearchcenter.com"

can anyone advice on fha streamline refinance?

Hi Andrew,

Welcome to Mortgagefit forum.

The requirements for a streamline refinance are:

1. Your present mortgage should not be in default.

2. The mortgage should be a FHA insured mortgage.

3. Cash cannot be taken out from the refinance.

4. The refinance will result in lowering your principal & interest payments.

Streamline refinance can be offered by lenders to include closing costs into new mortgage. But this can be possible if there is enough equity. A streamline refinance can also be done without appraisal but in such situation the new loan cannot be more than original loan amount.

Additionally, no cost refinance in which borrower does not have to pay for closing cost expenses is also done by lenders. For such refinance a higher rate is charged for the new mortgage.

Colin

As one that originates FHA, I think I can shed some light on the topic:

a. Qualifying factors for FHA loan:

- Credit score is not a driving factor
- Have a min. of 3% for downpayment
- Verify income/assets in a FULL DOC format
- Steady employment (> 2 years)
- Acceptable credit history (no late payments preferred [but not always necessary] in the last 12 months)
- Front/Back end ratios of 29/41

b. You could put as much as you want down and still qualify for a FHA loan.

c. There are no specific income guidelines beyond DTI for FHA.

d. 3% down payment may not be required if you qualify for a DPA grant.

Regards,

Scott Miller

Hi Scott,

What is DPA grant?

"Hi Scott,

What is DPA grant?"

Eric,

DPA grant is short for down payment assistance grant which a person can avail if he is not in a position to make the required down payment.

Miller