Tag Archives: Loan Lenders

100 Percent Mortgage Financing – Qualifying for a FHA Loan

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If looking for a no money down or 100 percent mortgage financing, you have several options. Understandably, many homebuyers have little cash on hand for a down payment. Because of the increase in home prices, saving the typical 20% is practically impossible. Fortunately, FHA home loan programs offer 100 percent mortgage financing, which eliminates the need for a large down payment. Here are a few tips on qualifying for a FHA home mortgage loan.

Employment Guideline for Getting a FHA Mortgage Loan

FHA loans are very flexible. Still, before approving a homebuyer for a FHA loan, the lender will carefully review several factors to determine whether they are an ideal candidate for a mortgage loan.

To acquire a FHA loan, lenders require steady employment. Usually, this involves two years of continuously working. It helps to maintain the same employer throughout the two years.

Individuals who change employers every four to six months or those who only held employment for half of the 24 months may have a hard time getting approved for a FHA loan. If unemployment was due to layoffs, illness, or other legitimate excuses, the lender may consider the applicant for approval.

Credit Guidelines for FHA Loans

When reviewing a homebuyer’s application for a mortgage loan, the lender will look at all credit activity that has occurred within the last two to three years. Concerning late payments, applicants cannot have more than two 30 days late payments within a two year period.

Bankruptcies must have a discharged date of at least two years. Furthermore, foreclosures must be at least three years old. In both cases, mortgage lenders require that homebuyers have begun re-establishing credit and building a good credit history.

Income Guidelines for FHA Loans

To qualify for a FHA mortgage loan, lenders will evaluate combine household incomes and other consumer debts (auto loan, credit cards, student loans, etc) to ensure that the mortgage payment does not exceed 30% of income. However, FHA loan lenders are flexible in this regards. Because of rising home prices and modest incomes, lenders may approve loans that exceed 30% of the homebuyer’s income.

Who Can Answer My Credit Report Questions?

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It is important to have your credit score checked as often as possible so that you stay informed on your financial situation. You may have many questions on your mind concerning credit report that require immediate answers. You need to visit a credit report company and have them advise you on any financial issue that may be on your mind.

Credit report companies assist you to determine your credit score and any other information that you may need concerning credit reports. There are good companies that will guarantee you a valued service. It is vital that one gets their credit checked by the 3credit system that is reliable and will guarantee success. If you do not have a credit report, the loan lenders such as banks and other financial institutions will not approve a loan for you. It is therefore, a vital aspect that is used in determining various financial services.

The Major credit companies where you can get your queries answered are TransUnion, Equifax and Experian. The company you choose will depend on your location and the service arrangements. Credit reporting agencies are important, as they have greatly helped in the detection of identity theft, which of late has become an increasing crime.
It is easy to access these companies but you need to be careful before you make your dealings especially when giving out your personal information such as names, account numbers and addresses. You need to check out the credibility of a company before you make your pick. You need to realize that due to the increase in debt consolidation, credit reporting has become a large business which has also attracted crooks in the business who may take you for a ride.

Make sure that you research well and approach people who have had assistance from the companies to give you an overview of their service to help you make an informed decision. To get a reliable service and all your questions answered choose the credit report company that will offer you counseling services, security as well as privacy when offering their services, avoid companies that will just rush for your payment.