How do I go about getting an FHA loan?
Where do I go, and who do I talk to?
I do have an outstanding bill of about 200.00 I owe to a phone company. I plan on paying this off within two weeks.
How easy or hard is it to obtain one of these loans?
Getting Over the Down Payment Hurdle
One of the top questions asked by first time homebuyers is how much money they will need to come up with for the down payment on a home.
The answer depends on several factors:
- Credit history
- Purchase price of the home
- Are you eligible for down payment assistance?
- Will you put at least 20% down?
- Do you have VA eligibility?
VA is one of the last remaining Zero Down Loans beside a Rural Development or USDA Loan. A USDA loan as the name implies is for rural properties and is not available within the Colorado Springs city limits. If you’re not eligible for a VA or USDA loan then an FHA loan will more than likely be your lowest cost option.
Currently an FHA loan requires 3.5% of the purchase price as the down payment.
For example:
- Your agreed upon purchase price is $200,000
- Your down payment requirement would be $7000
FHA is also very flexible when it comes to the source of the down payment.
Acceptable FHA Down Payment Sources:
- Gift Funds – Family, close friends, employers, and charitable organizations can be acceptable donors as long as they have no financial interest in the property.
- Loans from Immediate Family – Unsecured or secured loans against the property you are purchasing are acceptable. We will need the term and interest rate along with an estimated payment to calculate with the payment.
- Secured Loans – Can be collateralized by investment accounts or real property. Payments on loans against deposited funds (401K, etc.) are not counted against you in the debt to income caluclations.
- Trade Equity – Borrower can trade real property as part of cash investment. (i.e. boat)
- Sale of Personal Property – Requires a 3rd party estimate of value and documentation proving the sale.
- Bridal Registry Accounts – This little known fact is a nice way to contribute to a loved one’s down payment. The account must be opened prior to the wedding and allows family and friends to deposit cash gifts.
- Sweat Equity – Any work done or materials purchased by the borrower before closing on existing or new construction can be counted towards the down payment.
- Commission from Sale – If you have a licensed real estate agent as a family member, they are able to gift their commission from the sale to you.
- Rent Credit – If you are purchasing the home you are currently renting you can count the amount of rental payments that exceed the fair market as defined by an appraiser.
Many first-time homebuyers turn to an FHA loan due to the minimal down payment requirement, flexible credit guidelines and low interest rates.
To learn more: Check out our FREE Top 20 Homebuyer Secrets that can save you thousands of dollars! Plus browse our Home Buying Resources section and fill-out a free no-obligation secure online application or call us in Colorado Springs, Colorado at 719.387.1368 with any questions.
Bad credit or No credit? Check out our Credit Repair Program and get started on the path to homeownership today!
Overcome loan application stage fright by reading my Simple Steps to a Complete FHA Loan Application
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I am getting a FHA loan and they are requiring tax returns?
I am one of the millions of people who tweaked the numbers a “little” two years ago. (Okay no bashing. I stopped and mentally prepared for an audit) Will this disqualify for the loan? I have been on my job for over 7 yrs and have decent credit. What are they looking for?
I am getting an FHA loan for a home in a 55 + community. Are there deed restrictions?
I have been told the loan may be denied because if there was a foreclosure they could not sell the house to anyone under 55. Yet, this adult community has HUD housing in it. I qualify in every other way. This is the only concern to the underwriter.
Getting Back In The Saddle After Filing a Florida Bankruptcy
The connotation of filing a bankruptcy in most cases has been met with feelings of helplessness, failure and shame. When basically, it should be viewed as a chance to start over with a clean slate. Sometimes circumstance happen beyond a persons control (loss of job, divorce, a death in the family or even expenses that have spiraled out of control).
Since a bankruptcy can legally stay on your credit report for up to 10 years, the cold hard fact is that purchasing a home won’t be a reality until at least 2 years after the bankruptcy. Also understand that because of a bankruptcy, a person’s credit scores are going to take a drastic and fast downward position.
OK, it happened, but now it’s time to pick yourself up, dust yourself off and come up with a game plan to get yourself back on track with your finances and start ‘re-building’ your credit.
Credit scores are usually determined by the demonstrating factor of showing that you can handle the financial responsibility of handling debt. This simply means; paying your obligations of your extended credit. By following some very simple guidelines, you may be able to rejuvenate your credit rating and rebuild your financial life.
The first rule of thumb is to make sure all financial obligations are paid on time. No more late pays…ever!!!
Achieving a good credit score can be a realistic goal after filing for a bankruptcy. You can build credit after bankruptcy by making wise financial decisions. Living within your means and using credit accounts sparingly. Make sure your monthly payments are made on time. Commitment is the most important ingredient to ensure re- building credit . Building credit after bankruptcy takes time, but it can and will happen through very careful financial planning.
There are numerous credit card companies willing to open an account for consumers who have recently been through a bankruptcy. Although these cards usually carry a higher interest rate and APR, it’s certainly nothing to be discouraged over. You need to look at it as your avenue to rebuilding. The smartest thing to do is carry as little balance as possible or make sure whatever you have charges throughout the month, is paid in full when the bill is due. Another option would be to open an secured credit card. This option is excellent since it can avoid certain fee’s often associated with unsecured cards. With a secured card, the lending institution will have you deposit the dollar amount equal to the credit limit on the card itself.
You do not have to let the bankruptcy cripple you for life. Address the issue, move forward and rebuild. Credit scores do effect numerous purchases: home purchase, home refinance, insurance and even buying or leasing an automobile. By following some very basic and easy rules, rebuilding consumers credit scores after a Florida bankruptcy is a definite possibility.
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Getting Closer Towards Parksville Real Estate
Parksville Real Estate presents you with unique opportunity for buying or selling real estate. This part of the world is now becoming a popular tourist hub. The cost of property is rising each and everyday in this part of the world as tourist from all over the world flock here during vacation. So it will be a wise decision to grab a plot here. The white sandy beaches and scenic beauty of the place is what each and every one looks for while vacationing with family and friends.
Choose the best property in the area. Check out different types of property for office and house in Parksville. Look for the size and decoration of different types of rooms available in the houses of this area. Get the general information about the bedrooms, bathrooms, the year in which the house was built, number of fireplaces, water supply, flooring, sewer and matrices regarding dining room, kitchen, master bedroom and garage. You can search for commercial properties and buildings and even residential properties. You can also check about the layouts, amenities and facilities available for these vacation properties.
Check out about buyers related issues like mortgages, assistance from government, how to plan your purchase, insurance for homeowners and also check the information specially made for sellers. You can get the complete list of realtors of this area. They can guide with different prices, norms and regulation about various sectors like residential, commercial or regarding managing property. Investing in land has always paid dividend to land owners, especially in places like Parksville. Each year thousands of tourists visit here during vacation and it generates huge amount of revenue. Owning a property in Parksville is always a good idea. You can even opt for renting your house during the peak seasons. This will earn you a huge amount of money and your investment is repaid in profitable manner.
Try to get as much information as you can about Parksville Real Estate. You can get the help from the Internet or from the realtors by directly contacting them. Collect information about the quotes, price and services available there and then try to compare them properly. Then only you choose your favorite piece of land.
can a repossession 3 years ago keep you from getting a FHA loan?
My husband and I are trying to buy our first home..well three years ago we relinquished his rights to a truck little did we know that it would show as a repossession on his credit score. We paid off the remaining balance of the truck after they sold it at auction. Since then we have built his credit score back up to a 688 and mine is a 733. Will this stop us from getting a FHA home loan?
Does anyone know where i could look to getting an FHA loan even with poor credit?
I want to buy a manufatured home and i need an fha loan to get down payment assistance? My credit isnt to great mostly from medical bills. Can somebody help?
getting fha loan with a 10 year old judgement on credit file?
i have good scores and good income with a 10 year old judgement can i still get a fha loan?
After getting a real estate license, how do I go about getting a job?
I am planning on getting a real estate license but how do I go about getting a job?