fha loan, Home Mortgage, Fha streamline refinancing.
Fha Home Loan
When searching for the best loan to meet your needs an Fha may be what you are looking to aquire. What should help you make the decision is a basic understanding of what a fha home loan is and how it serves the borrowers needs. As with most home loans there a three major items that borrowers must present to the mortgage lender to qualify for a loan.
- Credit History - When it comes to an Fha loan the credit history can be more lenient than other mortgage products. As a general guideline you want to have three trade lines open and active. This could be a current home mortgage, credit cards student loans and installment payments. These accounts should be reported to the credit bureaus for at least two years. Services such as cell phone pagers gas and electric etc. are considered services and not debts so they are usually not considered. When it comes to Fha loan guidelines, if you do not have the standard credit history you may prove the ability to repay debts by using the above mentioned services or similar services. You may also have some derogatory credit history such as a BK, late's or collections and still qualify for an fha loan. Most collections must be paid of prior to getting a Fha loan product. If you have had a bankruptcy you should have 24 months since discharged. Remember, as important as the 2 years after a charge off is the re-establishment of new positive credit history. So, simply getting a discharge must be followed up by getting more credit history, Often a secure credit card is the only option but it will do.
- Income - Although most mortgage products desire a minimum of two years at you current employment and income an standard Fha loan does not require a two year employment history. They will use time in school as work experience (use a registration to prove) . Fha loans also may use a commitment letter of employment from the employer to determine income amount.
- Asset/Collateral - Most times the collateral in a transaction is the property. Fha loan appraisal are very strict on the property. They require certain requirements to be meet that other loans do not. Assets may be the equity in the home for a refinance but most times it would be checking, savings and personal asset such as 401k stocks bonds mutual funds.
