FHA Loan Qualifying Summary ...............................................................................FHA loans are the easiest type of real estate mortgage loan to qualify for. The FHA guidelines for loan qualification are the most flexible of all mortgage loans that require less than 5% down payment. Following is the basic FHA loan qualification guidelines.
FHA Loans - Documents Needed for FHA Loan ............................................................................... The most important thing to understand is that the loan approval process is 100% dependant on your documentation. To insure a smooth transaction, it is imperative that you have all of your documents gathered prior to you initial loan application. Following is a list of all the documents you will need. Please feel free print this screen and use this as a checklist.Employment Information
FHA Loans - Income Qualifications ............................................................................... FHA has designed its program to assist people to purchase homes and refinance existing mortgages. Therefore the income qualifying guidelines are more flexible than traditional Fannie Mae & Freddie Mac Conventional Home Loans. One of the first questions we will ask will consider is how much of your total income you will spend on housing. This information helps the lender decide whether you can comfortably afford a home. When you are qualifying for a loan, a we will use your gross income. That means all the money you earn before taxes, including overtime, commissions, dividends and any other sources --as long as you can show a steady two year history for these sources. Your monthly housing expense as a percentage of your monthly income is called the housing expense (a.k.a.: front-end) ratio. FHA suggests to spend about 29% of your income on your house payment (including the mortgage, property taxes, mortgage insurance and hazard insurance). Calculate what your new monthly mortgage payment should be by using the formula: Gross Monthly Income multiplied by 29% = Mortgage Payment. Sometimes you have to stretch that percentage when you buy a house -- and that's one of the benefits of easier qualifying FHA home loans. To qualify, you're allowed to spend up to 35% of your income on your house payment, as long as everything else in your application shows that you can handle the "stretch." One important thing FHA will do is compare your housing expense now to the expense you'll have if you buy a home. The smaller the increase, the stronger your application looks. FHA Loan Funding Process ...............................................................................After your loan documents have been prepared, signed, dated, notarized, and returned, they will go into funding. This is when all of the signed documents are reviewed by the investor to insure that everything is signed correctly. At this point they will also do a final back-up quality control check of your credit and employment to insure nothing has changed since the loan was approved. Once everything has been verified and checked, the investor will fund the loan. The funding of the loan is when the monies your borrowed are wired to the title / escrow or closing attorney for disbursement. This is when the actual exchange of money is completed. This is completed usually through an electronic wire transfer that must be sent before 12:00 p.m. to insure same day confirmation. The funding will usually take place 2-4 days after the loan documents have been returned to the investor by escrow / title.
|
No comments:
Post a Comment