FHA Home Mortgage Loan Interest Rates

First of all, let us define what an FHA loan is. An FHA loan is one of the best options you can opt for if you are buying a home in a rural or urban environment. If you wish to make a down payment that is lower than the usual, then this is the loan that is right for you. After all, the FHA is lenient when it comes to credit. But, there are FHA loan requirements that you must meet before you are even approved for the loan.

You have to show the lenders that you can meet the financial obligations that they question of you.

Here are some things you have to remember about FHA loan requirements.

First of all, any bankruptcy must be 2 years ancient. You also need to have excellent credit for two straight years after the bankruptcy has been filed. If there is a history of foreclosure, it must be 3 years ancient. It must also be followed by 3 years of excellent credit.

You must also have stable income for 3 years. You must also present proof that you pay all your bills on time. In addition to that, you must make a 3% down payment. This is lower than most loans.

You must also make the monthly payment that is approximately 30% of your total income. You can apply for the loan if you are able to meet these FHA loan requirements. Aside from these, there are other FHA loan requirements as well. The property you must be applying for should also be eligible. Examples are single family homes, condominiums, modular homes, double-wide manufactured homes, and 2 to 4 unit homes.

If you are wondering what the ineligible homes are, these are the boarding houses, hotels, private clubs, commercial properties and co-ops. In a nutshell, a home is considered to be ineligible if the seller has only bought the house for the past 3 months.

The property must also be over 10 acres and the loan is based on the price of the house per acre. Another requirement is that the property is used as residency and not for business.

Another type of FHA loan that has qualified the specific guidelines is the 203k loan. To clarify it further, this is the buying and then the remodeling of the home. This is also eligible for an FHA loan.

So if you are looking for houses that fall into these categories and you want to save money because of the low interest rate that you can make the most out of, then meet the FHA loan requirements that have been mentioned.