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Further
Reading ...
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Credit Repair Scams - James H Dimmitt
“Erase Bad Debt !” “Remove Negative Items From Your Report” You’ve probably seen these headlines and others just like it promising to clean up or “fix” bad credit. For someone who suffers from a bad or poor credit rating, these headlines are...
Increase Your Income with an Organization Plan - Albin Dittli
In a recent article, Increase Your Income with an Organized Marketing Plan, I talked about how to organize your daily marketing tasks so that you could be more efficient in your marketing, save time, and make more money. There are additional ways...
The Internet - a Numbers Game.... - Richard Grady
If you take a close look at this 'working online' business, you will see that it is quite simply a numbers game (this is actually the case with most if not all businesses). At the most basic level, building a successful website is just a matter...
Earn money with home business utilizing internet. - Perry Saevik
You want to enter the e-business. What shall you sell if you don’t have a product already? Let me tell you, there are different articles or products out there waiting for a seller like you, you only need to find these articles or products. The...
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How To Qualify for First Time Home Buyers FHA Home Loan Programs
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Written By:
John Williams
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FHA offers the most popular home loan programs among first time home buyers. This is mainly because of the low down payment and easy qualifying criteria's.
FHA, which stands for Federal Housing Administration, is a governments backed loan. Most people are not aware that FHA does not provide loans. Instead, the loan which your lender provides to you, will be backed up and insured by FHA.
In other words, if you default on your loan, your lender will be covered by FHA insurance funding. This represents the main reason why it's easier to qualify for the FHA Loan Program.
Normally the only criteria's that a lender will request in order to qualify for the program include:
* 1. Credit Score. A credit score above 575, which is poor but moderate credit. Also, they will expect you not to have any derogatory accounts on your credit report. All past collections should be paid off upon submission of loan application.
* 2. Good and stable employment history. You will need at the least two years at your current position and or two years of employment history in the same line of work.
* 3. Down payment. You need funding to pay for closing cost and down payment cost. The closing cost normally range from 2-3% of home value and the down payment averages around 3% or more of the home value. There are FHA programs that offer zero down loans.
The amount your lender will lend to you depends on your income - continued below ...
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continued ...
and the amount of your current debt. FHA figures your loan amount based on your monthly income and total debt combined with future mortgage expenses. They request that all of your debt not exceed 45% of your monthly income. This amount includes PITI (principal, interest, tax, and insurance.
For example:
If your gross monthly income is 4500.00, your monthly mortgage and debts can not exceed 2025.00. If you current debt averages 1000.00, you will only qualify for a monthly mortgage not to exceed 1025.00 including PITI.
Most lenders are strict with this criterion and will ask to see two years of W2's and six months to a year of pay stubs; in order to verify your monthly income is stable and does not fluctuate per month.
To get the best benefits of the FHA loan program find a lender that is most compatible with your current financial and credit situation.
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About the Author
** Attn Ezine editors / Site Owners **
Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in
place, do not modify the content and include my resource box as listed above.
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| _Additional Resources ... |
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1) Rome Wasn't Planned, Funded, and Built in One Day ****************************************************** The process of putting together a coherent business plan will probably take longer that you estimate (an incoherent business plan on the...
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