How do you qualify for a 30-year FHA mortgage? The good news is this is a federally backed mortgage loan. As a result, it is likely that you will pay less for this loan than you would if you obtained the same loan through a conventional mortgage. FHA loans are backed by the federal government. This means that there is more security in these loans. If you fail to make payment, the lender will file a claim with the FHA for the amount they’ve lost in the transaction. Because of this reduced risk, these loans tend to offer better terms overall.
Who Can Get Them?
The 30-year FHA mortgage is available to many borrowers. They are particularly great for first time home buyers. These are individuals who have never owned a home or who have not owned a home in the last three years. You will still need to meet various types of credit qualifications. For example, you will need to have a credit score of at least 650 (sometimes a bit lower). In addition to this, you will need to have a steady income that you can prove. You may also need to have references.
What Else Should You Know?
The 30-year FHA mortgage is available to borrowers who may not have perfect credit but still have the means to make payment on their loan. For example, you will need to have a down payment, but it may only need to be three percent instead of the 20 percent other lenders require.
When it comes time to obtain a 30-year FHA mortgage, remember that you can obtain these loans from Guaranteed Rate. Compare rates carefully to find the best terms to fit your unique needs.
A 30-year FHA mortgage is an option to consider, go to Guaranteed Rate for options.
