The FHA or Federal Housing Administration loan is a special kind of loan issued by the Federal Housing Administration. Only an FHA-approved lender is qualified to give the FHA Loans. This is a special kind of loan designed for those in the income range of low to moderate. The down payment for this loan is lower than what obtains in many other types of loans. The borrower also does not need to have a high credit score as compared to what obtains in many conventional loans. It is now possible for individuals taking FHA Loans to borrow as much as 96.5% of the value of the home when getting an FHA loan. As a result, the borrower will only need to make a down payment of 3.5% on the property to be bought with the FHA Loan.
FHA Home Qualifier. This loan is a great option for people whose credit scores are 580 and higher, and who have a 3.5% down payment.
These loans are insured by the Federal Housing Administration (FHA). The FHA protects lenders against defaults on payments. This makes it easier for you to qualify, and allows lenders to offer lower interest rates.
Before you can get an FHA Loan, you will need to have a credit score of 580 minimum before you can qualify for the loan. This does not mean that you do not stand a chance to qualify for the loan if your credit score is between 500 and 579; for you to qualify for the loan in this situation, you will have to make a minimum initial deposit of 10%., you can make the down payment for the FHA Loan using your savings account. The down payment can also be made from a financial gift from your family members. In fact, a grant can be used to make the payment. The benefits of the FHA Loan make it one of the most popular of all mortgage loan types. Most first-time homebuyers prefer this type of loan for their homes. Before you can qualify for this loan, you are expected to buy mortgage insurance. The borrower is also expected to make a premium payment to the FHA.
The FHA Loan is not disbursed by the FHA; it is disbursed by financial institutions and banks that are approved by the FHA. Be that as it may, the loan is guaranteed by the FHA. Another name for the FHA Loan is the FHA-Insured Loan. In case you default on the loan, the lender will be the one to bear the brunt; this is because the FHA pays a claim to the lender.
How to get FHA Loan with ease
Mission Pacific Mortgage is one of the best financial institutions in the United States and you can get in touch with us today for your FHA loan. We have got what it takes to meet your needs at all times here. Robert Boladian, the founder of Mission Pacific Mortgage is a proven mortgage loan service provider with many years of experience. Over the years, he has received accolades from clients across the United States and he has got what it takes to meet your needs as far as mortgage loans are concerned. His level of knowledge and experience makes him stand out and there is a 100% assurance that you will always get good value for money when you partner with us for FHA Loan. The client is always central to all our activities at Mission Pacific Mortgage.