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 Refinance
The 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.)
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Holly and her team were recommended to me by my real estate agent. Holly Walther & Team are a very organized and knowledgeable group. Their attention to detail is outstanding. In addition, they create an honest atmosphere of caring by making themselves available for questions - no matter how small or silly the questions may seem. At one point in the process, I deeply misunderstood part of the reasoning behind a portion of the loan process; I broke down in a sobbing mess. It would have been easy for Holly Walther & Team to treat me differently at that point - like someone who is incapable of controlling their emotions. Instead, the team treated me with their highest reapect, and continued to reach out to me via e-mail, text, and phone calls. I highly recommend this group, not just for their expert skill sets, but also for their genuine compassion and ability to collaborate with all types of people.
Holly and her team are amazing and I’m so glad I had them in my corner. I bought my first house end of last year and I must say the building process was not smooth but Holly and her team had my back the entire time. I wish the builder was on top of things the way Holly and her team were. They kept my spirits up and kept me well informed. I highly recommended Holly and her team.
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Holly and her team have mastered the mortgage loan process. Holly has great knowledge and is able to find a way to get most loans approved.
Holly and her team are absolutely amazing to work with! They are extremely quick to respond to any questions and thoroughly explain every detail of the process. They made our home refi incredibly simple! Thank you, Holly!
Thank you for another well done job. My client appreciated the updates you gave through the process
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From start to finish, Holly and her team did an amazing job through the entire lending process and bestowed nothing but confidence for me and my wife in the process. Great job by everyone on her team. We would HIGHLY recommend her!
We loved working with Holly and her team! They were wonderful every step of the way and my favorite thing was the weekly update emails. I never was left waiting to hear from them and they treated us with so much care and consideration. I have recommended this group to all of our family and friends and plan on using them again in the future!
Holly and her team are amazing. We have recommended them to several of our friends over the years. They are both professional and personal in their approach to helping people find a home. No stone is left unturned when they begin helping their clients. My wife and I have bragged about Holly and her team for years. We are currently using them for the second time to help us find our second house.
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We had an awesome experience with this company!! Holly and team did an outstanding job throughout the entire process. The whole team’s communication was excellent. Even our real estate agent was impressed. I would use them again.
Holly and her team were all very consistent and thoughtful in their communication with me. Any and all questions I had for them were answered promptly, kindly, and patiently. I highly recommend reaching out to Holly and her team for those interested in buying real estate.
In the last 20 years, I've been "to the well" a number of times - purchases, refinances, children's first mortgages - and ONE TIME I thought I would "save some time" by letting my existing lender refinance their own loan. Once burned - and I've learned my lesson - I will NEVER consider another mortgage guru - Holly has always been available, to answer questions, had provided flawless advice at every junction, and thee process is so smooth and easy, you actually feel bad for folks who areen't using her team!. I know that I will never do that again. Thank you Holly Walther Team for all you do to make this process almost seem easy. It's been said that an expert makes thee difficult look easy - and the easier it looks, the more an expert they are! That describes Holly.