Maria Elena Casillas, Intero A Berkshire Hathaway AffiliatePhone: (408) 821-2649
Email: [email protected]
Email: [email protected]
Backed by the Federal housing administration, FHA insured mortgages can be an excellent choice of financing for potential homeowners. These loans are insured by the government rather than a bank or other lending institution, and as such have slightly different requirements and processes.
An FHA loan has fixed rate terms with fixed interest rates. Flexible underwriting standards are meant to allow for homeowners who may otherwise not be able to afford private loan programs. Their debt-to-income ratio, credit score and other financial requirements also tend to be more flexible.
However, the borrower must purchase FHA mortgage insurance, which protects the lender against losses should the borrower default. As with almost all other mortgage lenders, mortgage insurance is required if your minimum payment is under 20%.
The maximum amount you can borrow with an FHA loan varies. Different states, counties and cities can affect the total amount you're able to borrow. This is because the money comes from a government budget set based on factors like income and population. Research the limits in your area while considering this financing option.
The first step in applying for a FHA loan is to choose a lender. There are many choices of reputable lenders offering FHA-backed mortgages for qualified borrowers. Once you choose your lender, you'll submit an application either online or directly with a loan officer.
Gather quotes from multiple lenders before deciding. Just like with traditional mortgages, shopping around for the best deal is a good idea. Before completing the application process, make sure you're getting the best possible rate for your mortgage.
To complete the application, you'll have to provide basic details about yourself and your property. You'll also need to give the lender supporting financial documents to verify things like savings, debt and income.
During this time, the lender will run a credit check to determine your eligibility. Typically, FHA mortgages require a score of at least 500. Your lender may consider multiple financial factors. However, it's important to show evidence of solid credit history to better your chances of approval.
Borrowers who qualify for FHA loans can experience the benefits of a government insured mortgage and better afford their dream home. If you're interested in obtaining a FHA loan, this information is sure to get you started.
You don’t need to do this alone. I am bilingual in English and Spanish, and I have been in the industry for over 20 years, after earning my degree in Business Management and successive studies in Human Resources and Technology. Never content to let my education lapse, I also received a certification in Negotiation Skills from Pepperdine University and attended courses at Stanford University. A leader in the field, I am a member of the Santa Clara Board of Realtors and served as a professional standards ombudsman for 8 years. I completed a term as the President of the National Hispanic Organization of Real Estate’s Santa Clara chapter in 2016, now serving as this organization’s National Vice President. I pursued additional in-depth training to achieve professional designations as an ABR (Accredited Buyer’s Representative), CRS (Certified Professional Specialist), and SRES (Seniors Real Estate Specialist), GREEN certification, and RCS-D (Divorce Real Estate Specialist). Far from being a meaningless alphabet soup, this demonstrates how proactive I am in pursuing the latest knowledge so that I completely prepared to satisfy all my sellers' and buyers' unique needs. I am committed to Excellence!
