Are you interested in the FHA loan? Since the 1930s, the U.S. government has installed programs that help homeowners borrow money to buy a house.
Not everyone is eligible for an FHA loan. You must meet certain criteria outlined by the Federal Housing Administration in order to be eligible for a loan.
Also, be prepared to provide lots of documentation and proof for the following items:
- Legal U.S. resident
You’ll need to provide proof of legal residency and a Social Security Number.
- Legal age to get a mortgage
You must also be of the legal age to apply for a mortgage in your state.
- Employment and income
Ideally, you can prove you have two years of consistent employment from the same employer and that your income has either stayed the same or gone up. You’ll need to collect W2s, income tax statements and paystubs.
- Credit score
The FHA loan does require that borrowers meet credit guidelines – check with a lender as credit scores vary.
- Debt-to-income and payment-to-income ratios
Lenders will look at your income and compare it with your debts to determine if you meet FHA eligibility requirements for debt-to-income ratios. Also, your expected mortgage payment must be around 30% of your income (before taxes and withdrawals.)
- Down payments
FHA loans require a 3.5% down payment. These funds CAN be gifted.
- Three years after foreclosure, two after bankruptcy (for non-homeowners)
If you foreclosed on your last house, you must wait three years until you apply for a new FHA loan. Approval will depend on credit and good documentation during the loan process. If you’ve experienced bankruptcy, you must wait two years until you are eligible for an FHA loan. If you were a homeowner during bankruptcy, you must wait three years.
FHA Streamline RefinanceThe FHA Streamline refinance was retooled in 2011 to help those already in an FHA mortgage take advantage of lower interest rates. Instead of getting your home appraised, you can refinance based on the original purchase price of the home and not its current value. This is extremely advantageous for those underwater in their FHA mortgages.
Although you do not have to verify your employment or income – or even have your credit pulled – on an FHA Streamline refinance you will need:
- Current on your loan payments.
Only one late payment within the past 12 months is allowed – no late payments within the past three months.
- Waiting period.
You cannot refinance back-to-back. You need at least six payments on your current loan. There must be at least 210 days in between your refinances.
- Show a “Tangible Benefit.”
Some acceptable reasons include reducing the monthly payment or getting out of an adjustable rate mortgage. (Not having extra cash.)
You have truly been a pleasure to work with! Everything from the start of the loan to the finishing touches was done with quick and easy access. All emails and phone calls took less than 24hrs to return. I will continue to refer anyone and everyone I know looking to buy your way! It's extremely convent when loans go smoothly and closing happens on time! Thank you for your hard work and your dedication towards our loan. It's all very much appreciated from us! Thank you!!
Adrian and his team are amazing. The process was painless!! I highly recommend them for mortgage and refi. Thank you so much!!!
We will be referring anyone we know. Adrian and his team were amazing to work with. Especially with being 1st time home buyers they helped alleviate so much stress and worry along with our wonderful realtor that they had connected us with. They were very knowledgeable and patient and very quick to respond. They were very prompt and clear about what was needed and when it was needed.
My husband and I will be referring everyone and anyone to this team hands down. Between them and our amazing Realtor as well this was a very good experience, especially being first time home buyers. Matt was hands down very professional and also very above and beyond patient, kind , and easy to take a moment to explain anything we needed. We will be always using this team and our realtor for any other future new homes as well. THANK YOU GUYS!!!!!
Adrian was amazing to work and I would recommend him to anyone! We started our loan process in February and hit some bumps with COVID-19 and an issue with our original title company. He worked quickly through EVERY issue, communicated quickly and clearly , and made homeownership happen for us. We are beyond thrilled with his service.
We have worked with Adrian and his team to purchase two homes and have never been dissatisfied. The team is fast and effective. They really do make the home buying process a piece of cake! 10/10 - Highly Recommend!
Adrian is exceptional - he is a hard worker, reliable, very intelligent, and has a great personality. He always reponded quickly and talked through/explained how/why things were done and my options. He worked hard to get me a low interest rate and a great loan. Working with Adrian is a smart choice -- but definitely ask him if it's possible to NOT work with Rachel once it gets into the paperwork/closing on a home process. His team doesn't even compare to him - especially Rachel. If she works on the loan with you, expect to never be contacted. I had to always call her first to inquire about my loan progress and push her to do her job (little harsh, but true! I wanna warn you). Once I left a message and she never called back. I wouldn't have ever known my loan was going to be delayed by the underwriter unless I had called her until she picked up so we could talk. I had to coordinate with my bank being out of town (2.5hrs away) and she didn't seem to care to keep me updated on when closing was. It's a huge bummer to have Adrian be such a great worker, and his team be so lazy. Hopefully you can work with Adrian and avoid Rachel!
Adrian was excellent to work with! We started our loan in February and hit some bumps with COVID-19 and our original title company. Adrian worked quickly through each issue, found us a new title company in time to make homeownership happen for us. The whole time, he communicated with us clearly and frequently. We are beyond thrilled with his service and I would recommend him to absolutely anyone.
Adrian worked HARD on our loan, and we closed on time in the middle of the COVID-19 shutdowns. He and his team jumped through multiple hoops for us. Amazing work!
Adrian and his team are top notch. They get the ball rolling and stay on top of everything until they get the job done. Very thorough and efficient. They are smart and innovative. Terrific at finding the right solution to improve your situation. Great use of technology and just good people. Will recommend!
We have worked with Adrian and his team to purchase two homes and have never been dissatisfied. The team is fast and effective. They really do make the home buying process a piece of cake!
Adrian & his team walked with us every step of the way!! They kept us very informed, which was very important to us! We had some hiccups (no fault of theres)...but they hung with us ...and we closed this past Friday! 🎉. Highest recommendation!
Adrian did a fantastic job helping us through the loan process, up until we met him..the VA process was a joke..we were very discouraged..he came to the rescue and was able to sort thru everyone elses messes and deliver us to closing..Thanks Adrian!!
Adrian has been wonderful to work with since day one! He helped us when we purchased our first home and again when we refinanced our mortgage. I have sent him countless emails on nights and weekends, fully expecting a response the next business day. He always gets back to me within an hour. I have even emailed him months after closing with questions and he is always willing to help in whatever way possible.
Adrian and his staff went beyond my expectations. Every step of the process was handled with professionalism and on a personally level as it pertained to my refinancing of my home. They took all my concerns and questions and answered them all in a timely manner. There were a few set backs, however, I was very comfortable with how they were all handled. I was always kept in the loop as what step of the process the loan was going through and what to expect next. I had several question throughout the whole process and never once did I feel like I was bothering Adrian and or his staff, he always said call anytime you have a question. I was very satisfied with the end result. Adrian and his staff rock and it was a blessing working with them.
Adrian was an amazing Mortgage agent. He aggressively looked for options that reduced our costs and explained each option and program throughly. I was particularly impressed with the regular and consistent updates Adrian did via email. When I called him he answered or person who was well informed and helpful. I'll 100% return to Adrian for future financing needs.