An FHA mortgage is an attractive proposition for anyone who qualifies for the opportunity to make a lower down payment and to pay reduced closing costs, when purchasing a home. These are just part of the deal you get with an FHA mortgage. There are plenty more reasons for wanting to know more about FHA mortgage loans and who qualifies for them.
What Is An FHA Mortgage?
FHA will not offer you with a mortgage loan, it only provides mortgage insurance for a loan you get from a mortgage lender who is FHA approved. This government-backed insurance is guaranteed to protect a lender against any default by homeowners. Under the terms of FHA insurance, any FHA approved mortgage lender can make a claim against any loss incurred through default of loan repayments.
This US government scheme does not cost American taxpayers any money. All insurance moneys collected through the scheme are kept in a single operating account.
FHA provides different types of mortgage insurance, according to need, and offers a range of insurance for first-time homebuyers, for multifamily homes, for refinancing and for other types of mortgage.
Who Qualifies For An FHA Mortgage?
An FHA mortgage is designed to help anyone who has been earning a regular wage for at least twelve months to become a homeowner.
Part time employees can also qualify if they have been in the same employment for at least two years.
Income from child support, alimony, disability...
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...he loan. Conventional loan, on the other hand, requires Private Mortgage Insurance (PMI). This is calculated based on several factors: credit score, down payment, debt-to-income, etc.
Closing Costs are generally lower with FHA than they are with conventional mortgage loans. Strict terms apply with FHA mortgage loans, restricting the type of charges your lender can add to your closing costs.
How Do You Apply For An FHA Mortgage?
AMCAP Mortgage is a “Full Eagle” FHA approved lender. What does that mean to a borrower? We originate, process, underwrite and fund our own loans under strict guidelines of FHA.
With so many advantages to be gained when you qualify for an FHA mortgage, it makes a lot of sense to consider FHA mortgage loans as a better, lower cost alternative to conventional mortgages.
Contact one of the FHA loan specialists or apply online.
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