FHA loans are one of the most popular kinds of mortgages here in NH, and they are an excellent choice for low-income families who want to own an affordable home. However, FHA loans aren’t just limited to low-income individuals, and anyone who wants to buy a house can avail of FHA loans in NH and buy their dream home.
Mortgage brokers such as NextGen Mortgage recommend the FHA loan to individuals who want a loan with easy qualification criteria. However, even though FHA loans’ qualification criteria are a lot more relaxed than other loan types, there are still some qualification criteria you need to meet. Many potential homeowners who are planning on getting an FHA loan aren’t sure how exactly they can qualify for FHA loans.
Even though the government backs FHA loans, you need to be eligible with a lender to get an FHA loan. This article will help you understand how you can easily qualify for an FHA loan, so read on.
FHA loan qualifications set by mortgage companies in NH
Here in NH or anywhere in the US, for that matter, you can get an FHA loan from mortgage companies, lenders, banks and agencies that operate in NH. Some standard criteria that you should meet to qualify for an FHA loan are as follows:
Have stable and verifiable income: One way to make sure that you qualify for an FHA loan is by having a stable job that results in a regular and verifiable income. Lenders prefer to provide loans to individuals who can keep a stable job and have a steady income to pay off the loan.
FHA loans, although they offer some security to the lender in case, the borrower is unable to pay off the loan they still have some criteria that need to be met. If you want to increase your chances of qualifying for an FHA loan, make sure that you have been working in the same place for at least a year or more. Once you have a steady job for two years or so, it automatically translates to you having a stable income, and you become a good candidate in the eyes of the lender.
Have a low debt to income ratio: There are situations where you can get rejected for a loan because you already have too much debt to pay off. FHA makes sure that you don’t end up getting a mortgage that you can’t afford, or it can affect your ability to meet other necessary expenses. So if you want to qualify for a mortgage, you have to make sure that your mortgage payments don’t exceed 35% of your income. Similarly, all your debt payment, including your mortgage payments, shouldn’t exceed 48% of your total income.
If you don’t meet this debt to income ratio currently, then make sure to pay off your existing debt before you can get your debt to income ratio low enough to qualify for an FHA loan.
Have at least 3.5% down payment ready: FHA loans have down payment loan requirements just like any other mortgage form. You will have to save up at least 3.5 per cent as a down payment to qualify for an FHA loan.
Have a FICO score of at least 580: While FHA loan programs require you to have at least 580 as your minimum FICO score to qualify for an FHA mortgage, the lenders themselves may require you to have a higher score. Since FHA is just the insurer of the loan and the lenders that set the requirements for their loans, you should have a FICO score upwards of 640 if you want to qualify for an FHA loan.
If you are having a hard time meeting these requirements, then NH mortgage brokers might help.
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