Enfield FHA Mortgage Loans - Top 5 Questions About FHA Mortgage Loans
FHA Mortgage Loans are now one of the hottest loans available and considered as one the best ways to fix the housing crisis currently in the US. Started during the Great Depression of the 1930s, the Federal Housing Administration since then secured loans for millions of Americans who want to own a home.
What makes an FHA mortgage loan so great? Here are answers for 5 common questions about Enfield FHA mortgage loans:
1. What are its prime benefits? The ability to purchase a home with less than a 20% down payment along with guidelines which are understanding of first time buyers and those who have had issues in their past. Because the loan is guaranteed by the government lenders are more willing to accept the greater risk presented by a low down payment FHA mortgage loan. Currently the cost of the FHA mortgage insurance is less expensive than PMI or "Private Mortgage Insurance" which has gotten more expensive since the "meltdown". Also PMI requires a down payment of 10% (this could change in the future but was accurate in October 2009 for loans here in Connecticut) where FHA only requires a borrower to put down 3.5%.
2. Who can qualify for this loan? In general terms a borrower can qualify if they have stable employment, good credit (currently a 620 score or greater will indicate good credit), and have the small 3.5% down payment ($3500 per $100,000 of the loan) available. You must also not own another property which has a government guaranteed mortgage on it (FHA, VA or Rural Housing). To confirm you are eligible for an FHA mortgage, please call me. You DO NOT have to be a first time buyer to get an FHA mortgage, and you may get an FHA mortgage again if you have had one in the past.
3. Can someone with blemished credit history qualify? You may have had credit troubles in the past and still qualify for an FHA mortgage. A bankruptcy, a foreclosure, collection accounts, or judgments. You should be able to demonstrate that your troubles are in the past. Each situation is different so if you have blemished credit, please call me. You may be surprised to find out you are able to buy a home right now, if not we can create a plan for you so you can buy a house in the future. It is possible, call me.
4. What information do I need to give you when I apply? We will want to know where you have lived for the past 2 years, your landlords contact information is helpful to have available. We need to know about all the jobs you have had in the past 2 years, including company name, address, phone number, job title and dates of employment. For your current employment we will want a months worth of pay stubs, and your last 2 years W2's. For your down payment we will need your last 2 months bank statements, or last quarters statement. This is a quick overview for a list that applies to you and your situation please call me.
5. Is there a pre-payment penalty? FHA loans do not have pre-payment penalties. You can pay any amount extra from a few extra dollars with each payment or the entire balance in advance.
As you can see an FHA Mortgage Loan is a great way to finance your new home. It could allow you to make a minimum down payment, have just okay credit with troubles in your past and be able to pay the loan off early should the opportunity present itself. A great combination for anyone looking to buy a home. Call me to find out if an Enfield FHA mortgage loan is right for you. 860-306-8029
Thanks to http://www.flickr.com/photos/danielsphotography for a great photograph!
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As quoted in the New York Times "A Little-Known Loan Program", and in the Hartford Courant "Moving In:Couple Combining Households Buys In Newington" and "Moving In... New Britain"