Are you interested in the FHA loan? Since the 1930s, the U.S. government has installed programs that help homeowners borrow money to buy a house.
Not everyone is eligible for an FHA loan. You must meet certain criteria outlined by the Federal Housing Administration in order to be eligible for a loan.
Also, be prepared to provide lots of documentation and proof for the following items:
- Legal U.S. resident
You’ll need to provide proof of legal residency and a Social Security Number.
- Legal age to get a mortgage
You must also be of the legal age to apply for a mortgage in your state.
- Employment and income
Ideally, you can prove you have two years of consistent employment from the same employer and that your income has either stayed the same or gone up. You’ll need to collect W2s, income tax statements and paystubs.
- Credit score
The FHA loan does require that borrowers meet credit guidelines – check with a lender as credit scores vary.
- Debt-to-income and payment-to-income ratios
Lenders will look at your income and compare it with your debts to determine if you meet FHA eligibility requirements for debt-to-income ratios. Also, your expected mortgage payment must be around 30% of your income (before taxes and withdrawals.)
- Down payments
FHA loans require a 3.5% down payment. These funds CAN be gifted.
- Three years after foreclosure, two after bankruptcy (for non-homeowners)
If you foreclosed on your last house, you must wait three years until you apply for a new FHA loan. Approval will depend on credit and good documentation during the loan process. If you’ve experienced bankruptcy, you must wait two years until you are eligible for an FHA loan. If you were a homeowner during bankruptcy, you must wait three years.
FHA Streamline RefinanceThe FHA Streamline refinance was retooled in 2011 to help those already in an FHA mortgage take advantage of lower interest rates. Instead of getting your home appraised, you can refinance based on the original purchase price of the home and not its current value. This is extremely advantageous for those underwater in their FHA mortgages.
Although you do not have to verify your employment or income – or even have your credit pulled – on an FHA Streamline refinance you will need:
- Current on your loan payments.
Only one late payment within the past 12 months is allowed – no late payments within the past three months.
- Waiting period.
You cannot refinance back-to-back. You need at least six payments on your current loan. There must be at least 210 days in between your refinances.
- Show a “Tangible Benefit.”
Some acceptable reasons include reducing the monthly payment or getting out of an adjustable rate mortgage. (Not having extra cash.)
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After being disappointed by multiple lenders, we were beginning to lose hope. Just when we were about to throw in the towel, I stumbled on Adrian while scrolling through Facebook. Adrian and his team went out of their way to make sure we got the best available loan. They were helpful, precise, and informative. They were patient and promptly responded to any questions we might have. Buying a home is stressful enough as it is, do yourself a favor and choose someone who is knowledgeable and always looking out for your best interest. We can’t thank you enough for all of your hard work and dedication in helping us secure our new home!
As a Realtor my lender partners are a vital part of every transaction. Adrian and his team go above and beyond with every transaction. When I represent a buyer I often get emails from the sellers agent telling me how on top of it Adrian and his team are with keeping them updated. They treat my clients with the upmost respect and walk them through the process step by step!
"Adrian and his team were on top of every aspect of the loan process. We were juggling two homes to sell, and purchasing our new home with plans to completely remodel it. Crazy, I know! Adrian helped us to review the pros and cons for different financing options, and got us to the closing exactly as expected. His team responded to emails, calls, and questions promptly and efficiently! I would highly recommend Adrain for all loan needs! And we will use him for all of our future needs as well.
I always love working with Adrian and his team! I have been working with Adrian since my first days in real estate and have used him time and time again. he has never failed me, and always helps explain AnYTHING that's tricky. He goes out of his way to help all his clients, no matter what! I enjoyed working with him on my personal home lain. I would continue to recommend Adrian time after time!
Adrian and his team are great at making deals happen. Adrian helped me personally when I bought my home after another loan officer dropped the ball, and he's helped my clients as well. He comes with my highest recommendation.
Adrian & his team walked with us every step of the way!! They kept us very informed, which was very important to us! We had some hiccups (no fault of theres)...but they hung with us ...and we closed this past Friday! 🎉. Highest recommendation!
Adrian did a fantastic job helping us through the loan process, up until we met him..the VA process was a joke..we were very discouraged..he came to the rescue and was able to sort thru everyone elses messes and deliver us to closing..Thanks Adrian!!
Adrian has been wonderful to work with since day one! He helped us when we purchased our first home and again when we refinanced our mortgage. I have sent him countless emails on nights and weekends, fully expecting a response the next business day. He always gets back to me within an hour. I have even emailed him months after closing with questions and he is always willing to help in whatever way possible.
Adrian and his staff went beyond my expectations. Every step of the process was handled with professionalism and on a personally level as it pertained to my refinancing of my home. They took all my concerns and questions and answered them all in a timely manner. There were a few set backs, however, I was very comfortable with how they were all handled. I was always kept in the loop as what step of the process the loan was going through and what to expect next. I had several question throughout the whole process and never once did I feel like I was bothering Adrian and or his staff, he always said call anytime you have a question. I was very satisfied with the end result. Adrian and his staff rock and it was a blessing working with them.
Adrian was an amazing Mortgage agent. He aggressively looked for options that reduced our costs and explained each option and program throughly. I was particularly impressed with the regular and consistent updates Adrian did via email. When I called him he answered or person who was well informed and helpful. I'll 100% return to Adrian for future financing needs.
Adrian went above and beyond my expectations as a lender and as a person who cared about my needs and wants. He made sure I knew what was going on at all times and made sure I was connected with a great realtor. Thank you Adrian!!
Adrian gave me the steps I needed toward fixing our sketchy financials in order to make preapproval and I look forward to working with him when we are ready to buy!
Adrian was amazing to work with. I was a first time home buyer & he was great every step of the way. He took the time to explain things to me, answer every question I had and made sure I understood what was going on. Adrians communication was wonderful, always called me back in a quick manner, even after office hours. I appreciate everything Adrian & his team did for me & I would highly recommend Adrian!
Adrian helped me aquire a loan and helped me close on the house once the loan was secured, and his service was fantastic. As a first time home buyer I was very overwhelmed with everything that comes along with that. Both my pre-approval and closing of the house were made seamless due to his knowledge of the market, and anticipation of my needs and capabilities as someone so new to it. He was very good at explaining to me everything that I needed to be able to provide in order to move forward, and that helped avoid a lot of potential pitfalls as result.If I ever have to do anything in real estate again he will be my guy, I will be recommending his service to friends in the future. If I have questions or come across anything out of the ordinary he is always quick to respond and very helpful with otherwise hard to answer questions.
Adrian was extremely helpful in a complicated home purchase for our family. He was not condescending at all when discussing issues of financing and made sure that our loan went through. If I had a question, he was available well beyond business hours even with children in the background if need be. He's an honest family man and I would work with him for a loan in the future hands down!