Posts Tagged ‘Qualifications’

« Older Entries

Qualifications FHA Loan – FHA home loans are easier than conventional!

March 15th, 2011

FHA home loans are by far the most popular mortgage loans available. FHA stands for Federal Housing Administration and is a government agency. These FHA home loans are generally loans that are funded by a federally qualified lender, but are insured by the Federal Housing Administration. Although a FHA Home Loan is easier to get than a conventional mortgage loan there are certain FHA Loan Qualifications.

FHA home loans are so popular because they will allow you to finance your home purchase with having much less than the traditional twenty percent down. You can have as little as three and a half percent. This really allows more people to be able to own their own home.

Once you have decided that this might be the way to finance your home purchase, you need to make sure you can meet the FHA loan qualifications.

Even though FHA home loans are the easiest type of loan to qualify for, you need to be able to meet these basic FHA loan qualifications.

1. The first FHA loan qualification is at least two years of consistent income. Most preferably from the same employer. Once you can prove your employment history, lenders also like to see that your last two years of income has at least stayed the same or even better if it has increased.

2. The next qualification is that your credit report should not have any more than two thirty day late payments in the last two years. Lenders would ideally like to so no late payments on your credit, but one or two will still be allowable.

3. Have a bankruptcy? Don’t worry, one of the FHA loan qualifications covers this area. If you have any bankruptcies on your credit, you might want to wait at least two years since it’s been discharged.

While you are waiting for your two years, you need to also show perfect credit since the bankruptcy too. As for previous foreclosures, lenders would like to see a minimum of three years of perfect credit since the foreclosure.

4. And lastly, your new mortgage payment shouldn’t be more than thirty percent of your gross income.

Those are the FHA loan qualifications on a very superficial level. Generally, these loans are the most popular because the FHA loan qualifications are so easy to meet. They are specifically intended for the average American it really wants to buy a house. They should not have a ton of money down and will not have to have absolutely perfect credit to qualify.

So if you're looking to buy a home and are looking for a mortgage loan, your best chance is FHA home loan because it is the FHA loan qualifications are more lenient than conventional loans.

Comments Off »

Posted in Home Loans Articles

Tags:

Loan Modification Programs – 3 Important Qualifications For Approval

May 5th, 2010

Trying to apply for a loan modification but worried about whether you will qualify? It’s true that not everyone will qualify for a loan modification to lower their payment-so how can you be sure to get your application to the front of the line and have the best chance for approval? Here are 3 Important Qualifications for approval you should know before you apply.

Loan Modification Qualification #1: You must be able to demonstrate to your lender that you have suffered a financial hardship that has made your current mortgage payment unaffordable. There are certain circumstances that lenders will consider as an acceptable hardship situation. Divorce/separation, military service, death of a family member, job loss, reduction in income, medical expenses, illness, incarceration and job transfer are all considered to be eligible for consideration. Loss of equity alone does not. There are three critical elements in an effective hardship letter-do you know what they are? Here is one tip-use the phrase “imminent risk of Default” and you will get your lenders attention.

Loan Modification Qualification #2: Can you prove to your lender that if given the new lower modified mortgage payment you will be able to afford to maintain it now and in the future? Lenders want to know that you will not be at risk of defaulting again. How can you prove this to them? Make it simple by providing the required financial statement that will demonstrate your ability to pay the new payment and help convince your lender to grant an approval for your proposed new lower payment. Your current mortgage payment, including your property taxes, homeowners insurance and any Homeowners dues, must equal more than 31% of your gross monthly income. Learn how to calculate your new target payment based on the Obama HAMP guidelines. If you are confused about how to do this, use the software program designed specifically for homeowners that automatically does all the calculations for you.

Loan Modification Qualification #3: Be able to submit an accurate, acceptable and complete application to your bank for review and consideration. Your lender will make a decision based in large part on the information you provide to them. Submitting an incomplete and poorly prepared application can result in a denial of the help you need. Be sure you prepare the paperwork properly and then submit everything your lender will need all together in a professional and acceptable loan modification package.

TIP: Make sure that you prepare your financial statement before you call your lender. Do not disclose any of your income or debts until you have taken the time to work on your budget-make any necessary adjustments and know that you fit into the approval guidelines. This is easy to do if you follow the directions in a handbook and software program that does all the calculations for you automatically. Simply input your own monthly income and monthly expenses and you will see immediately if you need to make some adjustments to your budget in order to meet the approval guidelines. You can avoid costly mistakes and save hours of frustration.

These are extraordinary times and more homeowners are faced with losing their homes than at any other time in our nations history. Borrowers who need help cannot wait to be rescued-help is available but you must know how to get it and be prepared to fight for your home. Start now by learning and preparing to submit your application to your lender to get the help you need and deserve. Billions of dollars in your tax dollars have been allocated for loan modification programs to help stop foreclosures. Don’t miss out on your chance to save your family’s home.

Comments Off »

Posted in Home Loans Articles

Tags:

Loan Modification Qualifications – How Do I Qualify For a Loan Modification on My House?

March 24th, 2010

A loan modification qualification is something that you need to do before your home loan can be considered for a change to the terms of your home loan.

Here are some criteria that might help you in determining if a loan modification on your home is an option:

1) Loan modification qualification #1. Have you had any financial hardships that are making it difficult to continue to pay your mortgage on time? Examples of these types of hardships could include the loss of your job, the death of your spouse (who was earning a good wage at the time of his or her death), medical problems that prevent you from working full-time (or not at all). Basically, you want to show why you can no longer make the payments on your mortgage. Don’t use lame excuses, such as you simply don’t want to work as many hours to make the current mortgage payment.

2) Loan modification qualification #2. Another factor in determining whether or not you qualify for a loan modification is the details of your current mortgage interest rate. Is your current mortgage interest adjustable and about to go up to the point that the new payment will be so high that you can no longer make it? Remember – people who took out ARM (adjustable rate mortgage) loans are now running into issues as their payments go up. Lots of people took out loans at the lower teaser rate with the thought that as the interest rate went up, they would inevitably have more income to make the higher payment. This may sound like a crazy scenario – but there are millions of Americans living this nightmare. If you can prove that you can afford to pay the terms of the modified mortgage, you might be in luck to take advantage of this great government-sponsored program.

Qualifying for a loan modification on your home or condo loan is only the first part of the process of home loan modifications. Once you have successfully qualified for a modification on your mortgage, hopefully the next step is for your lender to approve a change in terms to your loan so that you can stay in your home and avoid foreclosure. Just a final tip. It is important that you be persistent in your quest to modify the terms of your mortgage. If the first person that you speak to says ‘no’, ask if you can speak to someone else. You never know if the person that you initially speak to will know all of nuances surrounding this program (and qualifications).

Comments Off »

Posted in Home Loans Articles

Tags:

FHA Home Loan Qualifications – 7 FHA Loan Requirements You need to know!

February 9th, 2010

When purchasing a new home, there is an important financing option to consider, the FHA loan. If you meet the FHA Home Loan Qualifications, you may be able to save a lot of money with an FHA loan.

Not everyone qualifies for one of these loans because the federal government has set some strict guidelines. The majority of people who finance with this type of loan are first time home buyers.

Here are seven FHA Home Loan Qualifications:

1. One of the FHA Loan Requirements is that the home you purchase must be your place of residence. People who invest in a home to rent it out are not eligible for an FHA loan.

2. There is also a maximum loan amount that is determined by the federal government. This amount is determined by assessing the costs of the area and the price ranges.

3. In most cases, this type of loan has a loan to value ratio of 96.5% unless there is special circumstance in which a larger down payment is required.

4. Having a solid employment history is another one of the FHA Home Loan Qualifications. Whether you are an employee or are self employed, to qualify for an FHA loan you must usually maintain a job or line of work for 1-2 years. A diploma may be accepted instead of work history if the borrower is a recent graduate. Borrowers who are self employed must provide 2 years of tax returns as well as a profit and loss statement.

5. The debt to income ratio of a borrower cannot be over 41% in order to meet the FHA Home Loan Qualifications. In some cases the government may allow up to 45%, especially if the debt is due to student loans.

6. FHA also requires the borrower to pay a down payment of 3.5% of the purchase price, unless there are special circumstances that may require a larger down payment. At closing, the seller can pay up to 6% of the closing costs for the borrower.

7. Last but not least, an thorough inspection of the home is one of the very important FHA Home Loan Qualifications. The federal government has strict standards on what they consider a habitable place to live. If the house is in need of any maintenance or improvements, the seller must have them repaired prior to closing. If they refuse to make improvements, the home will most likely not qualify for an FHA loan.

FHA Housing Loans are the most popular ways of funding the purchase of home today in the U.S., mostly because of low down payment and low credit requirements. If you can not meet the FHA Home Loan Qualifications then you can buy that dream home of yours!

Comments Off »

Posted in Home Loans Articles

Tags:

What Are The Qualifications To Get A Studen Loan And How Do I Get One?

October 31st, 2009

I need a student load because I am planning to study abroad, but I won’t be able to pay it off until I come back to the States. Can I get a student loan without making payments on it until I finish my schooling?

7 comments »

Posted in Home Mortgage Loans ?

Tags: