There are many steps in the home buying process, and the first one is to determine how much home you can afford and what type of loan you can get pre-approved for. Talk with a reputable mortgage broker about what options you have, but here are 3 reasons that a FHA loan might be right for you:
Your Credit isn’t Very Good.
Creditors aren’t very trusting when it comes to giving a mortgage to anyone with a low credit score, but there is where FHA loans are different. FHA loans require a 500 credit score minimum vs. the 620 credit score minimum required for a conventional loan. If you’ve been repairing your score and didn’t think you had a shot at a mortgage, a FHA loan is an excellent option.
You Need a Co-Signor on your Loan.
If you’re having trouble qualifying for a home with your home debt-to-income ratio, FHA loans allow you to put a non-resident co-borrower on the loan that can help balance your debt-to-income ratio.
You Have Some Major Credit Issues in Your Past.
Credit problems such as foreclosure, bankruptcy, etc. can wreck havoc on your ability to get a loan. But with a FHA loan, the good news is that those wait times are basically cut in half. You can get a FHA loan just 3 years after foreclosure and 2 years after bankruptcy.
If you’re interested in purchasing a home and think a FHA loan could be right for you, call the Flower Mound real estate agent experts at The Stacey Sauer Team! We can connect you with a solid Flower Mound mortgage broker who can take care of you and walk you through the process from qualifying for a loan to purchasing your dream home. The Stacey Sauer Team is here to help you buy a home in Flower Mound, Highland Village, Lantana, Lewisville, Grapevine, Argyle, Double Oak and the surrounding areas.