The government backed FHA loan is currently one the best options available to most buyers who can't put 10-20% down on a home purchase. The Federal Home Adminstration (FHA) offers a loan program administered by banks and mortgage companies with just a 3.5% downpayment requirement.
This is the lowest down-payment option available in the current lending environment and you don't have to perfect credit to qualify. A credit score of 580 or above is necessary for FHA. The closer your score is to 720 or higher then the better the rate.
These loans are available on single family and approved condos up to a sales price of 535,900 in Richmond.
Here are the basic requirements:
Two Years of steady employment, preferably with same employer.
Last two years Income should be the same or increasing.
Credit report should typically have less than two thirty day lates in last two years with a minimum credit score of 580 or higher or no credit score at all.
Bankruptcy's must be at least two years old, with perfect credit since discharge.
Foreclosure's must be at least three years old, with perfect credit since.
Your new mortgage payment should be approximately 30% of your gross (before taxes) income
I have a good mortgage lender in my office if you would like more information or would like to apply. Now is a great time to buy with a high inventory of homes available, low interest rates, an $ 8,000 federal tax credit for first time buyers and sellers that are more negotiable in paying closing costs.
Call Kerry Riley at 804-432-2688 for more information.
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