Buying a home is one of the most life changing things an individual or family can do and Landmark Bank is proud to be a part of this event for many families by providing a reliable loan that fits their needs. For many First Time home buyers, an FHA loan is a great option.
What is an FHA Loan?
FHA Loans are insured mortgage loans that are backed by the Federal Housing Administration (FHA). When a family or individual applies for an FHA loan, the federal government insures the loan in order to reduce their risk of loss if a borrower defaults on their mortgage payments. FHA loans provide mortgage lenders with adequate insurance while helping homeowners get more access to affordable home loans.
FHA Loan Requirements
Typically, an FHA Loan is one of the easiest types of home loans to qualify for. There are several qualifications you'll learn about when you apply for your loan and speak with a mortgage specialist from Landmark Bank. A sample of requirements from the full list follows. For the complete list, get in touch with a Landmark Real Estate lender today.
- Must have steady employment history or have worked for the same employer for the past two years.
- Must have lawful residency in the US, be of legal age to sign a mortgage in your state, and possess a valid Social Security number.
- Minimum credit score of 640 for maximum financing with a minimum down payment of 3.5 percent. Lower credit scores require a larger minimum down payment and credit worthiness is determined on a case-by-case basis by the lender.
- Additional requirements pertain to your history of bankruptcy filings, prior foreclosures, property standards and appraisals.
Benefits of an FHA Loan
For new home owners, an FHA Loan carries a number of benefits that tend to allow more people to easily qualify for them, as they require a low down payment and you can have less-than-perfect credit and still obtain an FHA loan. This means that FHA loans are a great option for people who have low or bad credit, have undergone a bankruptcy or have been foreclosed upon in the past. In addition, FHA loans can be assumable, which means that if you sell your home, the buyer can “assume” the loan you have.
Get An FHA Loan Today
One of our home loan specialists are standing by ready to talk to you about obtaining an FHA loan through Landmark Bank. Click the button above to apply for an FHA Loan, or find a specialist in your area.