If you’re struggling to qualify for a conventional mortgage but your heart is set on homeownership, FHA loans through EZ Lending Solution might be the perfect fit. These loans are guaranteed through the Federal Housing Administration, which means they are government-backed and therefore available to potential homeowners who may not qualify for conventional mortgages due to imperfect credit.
Because FHA loans are government-backed, they are much easier for potential buyers to qualify for, and they come with significant benefits.
Those who have FICO credit scores of 580 or above can qualify with a down payment of as little as 3.5%.
Credit scores as low as 500 are accepted for FHA loans, though the down payment increases to 10%.
Interest rates for FHA loans are often lower than those associated with conventional mortgages.
Sellers can pay up to 6% of the loan amount to help cover the buyer’s closing costs as opposed to the 3% maximum allowed by conventional mortgages.
Although these loans are generally easier to qualify for, you will need to meet some basic requirements to be considered. These include a steady employment history, a debt-to-income ratio of 43% or less of your gross income, and at least two years out of bankruptcy (if you have ever filed bankruptcy). The property you purchase must meet minimum standards set by the FHA at appraisal.
Unlike conventional mortgages, FHA loans come with a maximum loan limit that varies not only on your income and debt-to-income ratio, but also on your region’s average cost of housing. EZ Lending Solution can help you determine your maximum loan amount and assist you in realizing your dream of homeownership – even if your credit is less than perfect.