FHA Home Loan allow millions of Americans the chance to borrow money to buy a home. While the FHA does not issue loans, they provide insurance to lenders who do. These home loans can be even be obtained with a bad credit rating. The requirements for getting an FHA loan are not strict, and can be easily gotten. The interest rate is also usually lower than other loan options.

Requirements for an FHA Home Loan:

1)If a bankruptcy was declared, it must be at least 2 years in the past.
2)The applicant should have had good credit in the past 2 years since their any bankruptcy.
3)The applicant should provide proof of income for the past three years. This needs to be steady, monthly, income. This makes mortgage lenders more likely to approve your application.
4)Any foreclosure should be at least 3 years old. This is a major component to being eligible, and getting approved, for an FHA home loan.
5)The application should at least be able to provide 3% down payment.
6)The applicant needs to be a permanent U.S. Citizen. A valid social security number will be required for approval.

However, an FHA home loan may not be the best option for some homeowners. Some mortgage lenders will have limits and policies. Therefore the home loan borrower might not be able to get the full amount of a loan which they need to better their financial position. Sometimes, private mortgage insurance is also required, even if a large down payment is also made. This can be another huge negative thing about an FHA home loan.

There are a variety of mortgage lenders who offer FHA home loan options. Do some research and make sure you get the best one for you.

-M Petrone

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