Securing a beneficial deal on a home loan or refinance while having bad credit can be a bit challenging – but an FHA home loan has been a well-known solution for borrowers with bad FICO score for some time. Why should you consider an FHA home loan and what are the FHA loan requirements Houston?
NO REQUIREMENT FOR MINIMUM CREDIT SCORE
Maybe the best thing of an FHA home loan is that there is no requirement for minimum FICO score to qualify. This brings a number of opportunities for numerous families looking to purchase a home of their dreams. FHA will still consider your home loan even if your FICO score is low because of late payments in the past. Keep in mind, any 30-day late payment is reported to the major credit Bureaus such as Equifax, Experian, and Transunion, which will remain on your credit report for around seven years. So according to FHA loan requirements Houston, you have to explain that you’ve been an accountable credit holder for at least 2 years.
LOW DOWN PAYMENT
With the help of an FHA home loan, the approved lender will ask you to put down only 3.5 percent of the loan amount as a down payment, on either a refinance or purchase of a home. A typical bank would require at least 10 percent to 20 percent down, making it almost impossible for most of the families to afford. Similarly, it’s prevalent to have the 3 percent down payment put down by the seller of the property in many cases, especially when you successfully find an interested seller of the home in the city of Houston. You’d be amazed how simple it is to negotiate this and meet all FHA loan requirements Houston!
COMPETITIVE HOME LOAN RATES
FHA mortgage will cost you less as compared to other traditional home loans since home loan rates are very competitive in Houston – most of the times even lower than bank offered mortgage rates on 30-year fixed home loans. FHA is dedicated to assisting borrowers with past credit issues to get the best deals on home loans possible. Take benefit of this by visiting several websites to discover approved lenders that are experts in FHA home loans.