Eudora Home Loans and FHA Home Loans Information for Arkansas Homebuyers
In today's KCHomeAdvisor mortgage article we have set out specific goals that we would like to accomplish. All of our goals revolve around the same ideal, thoroughly educateing homebuyers interested in the free benefits offered by the FHA home loan. To accomplish this we will focus on targeting the following key points regaurding Eudora, Arkansas FHA home mortgages.
We hope you feel that we adequetley covered the topic, and that your are able to walk away with all of the information you are looking for plus some. However, if you have other questions that were not answered or you would like professional home loan consultation that analyzes your individual circumstance, feel free to give one of our experts a call at (816) 945-9924!
Now that our prelude is over, here are the key points we will highlight in today's article.
- A more difinitive definition for the FHA Home Loan, highlighting the reasons the government offers free financial assistance.
- A quick overview of the specific benefits that the FHA mortgage may provide for Eudora homebuyers.
- Both what it takes to be eligible for the free financial benefits as well as the steps a Eudora homebuyer can take to obtain this unique mortgage.
The TechnicalFHA Home Loan Definition according to Wikipedia
An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan which is provided by an FHA-approved lender. FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. To obtain mortgage insurance from the Federal Housing Administration, an upfront mortgage insurance premium (UFMIP) equal to 1.75 percent of the base loan amount at closing is required, and is normally financed into the total loan amount by the lender and paid to FHA on the borrowers behalf. There is also a monthly mortgage insurance premium (MIP) which varies based on the amortization term and loan-to-value ratio.
That being said, the USDA home loan mortgage program does NOT require a down payment, but the Guarantee Payment IS required.
Benefits of the FHA Home Loan: Eudora Mortgages
Eudora FHA Program Offers Low Down Payments
Your down payment with an FHA loan can be as low as 3.5 percent. And you can use gift funds from a charity, employer or a family member.
It Offers Lenient Credit Score Requirements
You don ot perfect credit to qualify for an FHA loan. You can even qualify after a foreclosure, bankruptcy or short sale after a year has passed.
Competitive Mortgage Interest Rates
FHA loans include an insurance premium, but they are still competitive with general market rates.
Help with Hardships for Arkansas homeowners and homebuyers
FHA has loan programs for people who have experienced financial hardship. And if you have trouble after you buy with an FHA loan, there are options to help you keep your home.
About the FHA Mortgage For Local Homebuyers
The Federal Housing Administration (FHA) was established as part of the National Housing Act of 1934. The reason it was establishes was to help stabilize the volatile housing market during the pinnacle of The Depression. The FHA implemented this mortgage loan as part of the effort to reverse that negative trend. The FHA was folded into the department of Housing and Urban Development (HUD) in 1965.
The FHA has insured millions of home loans and mortgages for a long time now.
Eudora FHA Eligibility Requirements
"What do I need to be eligible for an Eudora FHA Home Loan?"
- A credit score of at least 530 (640 is preferred)
- 2 years of steady employment/income
- No bankruptcy or foreclosure within the past 12 months
- Your Missouri FHA property must be your primary residence
The FHA requires an Approved Eudora, Arkansas Property Appraiser
The Eudora mortgage broker you choose to work with will have to get an appraisal of the property before they approve the loan. They want to do this to make sure the property is actually worth the price your paying for the home. This is an investment for them and they want to make sure it is structurally sound so they can recoup on their Missouri investment.
"How do I calculate my debt to income ratio?"
"How do I calculate my debt to income ratio?"
Front End Ratio First, you will need to know what your front end ratio is. This is simply the percentage of your income that will go towards your mortgage on a monthly or bi-monthly basis. So, if you put 1/4 of your monthly income towards your FHA Mortgage then your debt to income ratio is 25%.
Back End Ratio
Secondly, you will want to calculate your back end ratio. This is the same thing as above except with all of your expenses on a monthly basis. So if you have to spend 1/2 of your monthly gross income on paying loans off then you have a 50% back end ratio.
Employment Verification For The FHA
Your Eudora FHA lender you choose in Arkansas will want to have a look at:
- Your pay day stubs
- Your tax returns
- Your W-2 tax forms for the past two years
What Property Types Are Eligible For FHA Home Loans?
- Two to four unit residences (when one unit is owner-occupied)
- Single-family houses
- Manufactured homes (mobile homes)
- Eudora FHA Home Loans include Condos
A lot of properties qualify as long as it is your primary place of residence. The FHA does not allow you to use the FHA mortgage on investments.
Eudora FHA Loans offer homebuyers low down payments
One of the biggest benefits of the FHA Home Loan is that it offers home buyers the option of a low down payment.
Well, in some cases you can obtain the mortgage with a down payment as low as 3.5%. This is the minimum percentage point. That is in comparison to the Conventional home loan which sometimes demands a down payment as high as 20% and above. When you look at the percentage differences you can see why the low down payment is so attractive to so many Eudora, Arkansas home buyers.
We hope you were able to take away some helpful information from this blog post, FHA Home Loans Eudora, Arkansas. (816) 945-9924
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More Eudora FHA Home Loan Information
- Eudora FHA Approved Property Appraisers
- Arkansas FHA Approved Property Appraisers
- Arkansas FHA Home Loan Limits
- Eudora FHA Home Loan Limits
Locations Near Eudora