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FHA Mortgage Guru

KNOW ABOUT OF FHA MORTGAGE

What exactly is meant by FHA Mortgage?

The FHA mortgages are normally the typical government based mortgages which are insured by the Federal Housing Administration. Federal Housing Administration or FHA is a branch of the. Department of Housing and Urban Development of United States. When in required of the financial crisis, the FHA borrowers pay the insurance of the mortgages which in turn protects the lender from any loss if the borrowers get defaulted on the loan. The FHA Mortgage is mostly popular amongst the new first-time home buyers. This is because they allow less down payment.

Requirements for FHA Mortgage

  1. The main requirement for the FHA Mortgage is the credit score and the down payments.
  2. To qualify for the FHA Mortgage the down payment for the applicants is only 3.5% and the minimum FICO score should be 580.
  3. The borrower should have a valid Social Security number and should be a lawful resident of the US.
  4. A steady employment history is required for the borrower and for a minimum of two years must have worked for the same employer.
  5. The new FHA Mortgage loans are available only for the primary residence.
  6. The minimum down payment of 3.5% can be also gifted from a family member.
  7. The borrower should ideally be out of bankruptcy for minimum two years. However, exceptions can also be made.
  8. A property appraisal from Federal Housing Administration approved appraiser is a must for the borrower.

 

Since, in today’s world, it becomes very difficult to even qualify for the mortgage without a decent down payment and the FICO score. But the FHA Mortgage Texas has made this possible for the people and helped them a lot in settling down with the help of the mortgages. There are very few restrictions for qualifying for the FHA loans that compared to the conventional mortgage loans. The borrower has a higher backend ratio as compared to the other mortgages because of the debt-to-income requirement. Also, like the FHA Mortgage Austin does not have a strict requirement as that of FHA Mortgage Texas, there is a slight catch here. The mortgage insures premiums in two different ways. One is the financed into the mortgage way and the other is the simple monthly payment.

 

 

 

Duration the borrowers have to pay the FHA Mortgage insurance:

The duration of the pay to the FHA Mortgage insurance normally depends on the terms and the LTV ration on the origination date of the loan. If the LTV is greater than 90% at the time the loan was originated, the borrower must pay the insurance of the mortgage for the entire loan. And if the LTV is less than 90%, then the borrower must pay the mortgage insurance for 11 years or for the terms of the mortgage.

 

About Author:
FHA Mortgage Guru offers home loan with loan down payment and is available to homebuyers with less than perfect credit score. For More info: https://fhamortgageguru.com/

 

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