Are you thinking of applying for a FHA loan? Keep these aspects in mind before opting for one. It comes from the premier mortgage company in Cape Coral, Florida.
A Federal Housing Administration loan or FHA for short is essentially designed for low-to moderate-income borrowers. What’s great about them is that they are insured by the FHA and issued by an FHA approved lender. Thus, it requires a lower minimum down payment than usual mortgage loans and has less stringent requirements. If you have a low credit score, then this is the ideal loan for you to opt for as compared to conventional loans that require a higher credit score.
However, there are some basic requirements that you still need to have in place. Here are some of them that have been put together by Elite Mortgage Source in Cape Coral Florida.
Credit scores – The minimum credit score should be 580 or higher. The higher the credit score the smaller the down payment. For instance, at a credit score above 580, your down payment may be of a minimum of 3.5%. However, with a credit score below 579, you may have to pay a down payment of 10% or more.
Income requirements – There is no clear-cut income figure that can qualify you for the loan. What matters is that you have at least two established credit card accounts. In addition, not having any delinquent federal debts, judgments, taxes, or debts associated with previous FHA insured mortgages is also an aspect to be wary of.
Property requirements – Along with the FHA borrower requirements, it is important to look into your property requirements as well. The house on which you intend to take the FHA loan should be your primary residence and not an investment property.
Anyone can opt for it – You can register for an FHA loan if you are a repeat buyer. You need not be a first time home buyer for this. Many individuals choose to refinance a mortgage by using an FHA loan.
At Elite Mortgage Source, we believe in maximizing customer satisfaction and making strategic financial decisions. This is why we offer a variety of products from which you can choose from. We understand that every borrower is different, and thus we use the latest financial tools to help make the best choices. What is even better is that we can even refer you to a local realtor to stay in touch with you and help you find your perfect home.
So, get in touch with us today. You won’t regret it! Call (239) 307-6300 and schedule an appointment with us. If you have any further questions or require any further information, you can drop us an email at don@elitemortgagesource.com. We will get back to you as soon as possible.
We also serve clienteles in Bonita Springs, Punta Gorda, Estero, Naples, Fort Myers, Port Charlotte, and Alva. Similarly, we are also available in other counties in Florida.
