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Promoting Homeownership For Chicago’s Working Class
A Federal Housing Administration loan, or an FHA loan, is a mortgage issued by an FHA-approved lender such as Guaranteed Rate. These home loans were designed to help low-to-moderate income earners afford a mortgage and achieve the dream of purchasing a home. They usually require smaller down payments and credit scores than conventional home loans.
With down payments as low as 3.5 percent, an FHA loan might be the right match for you. To evaluate eligibility, we just need to know more about your credit score and your long-term goals for the property. Our team will determine which options you qualify for, then help you get started.
A few things you should know about FHA loans:
- FHA loans are available for primary residence loans, not for rentals, vacation homes, investment properties, or second homes.
- 580 minimum credit score applies to 3.5% down payment, but those with lower credit scores may qualify with a higher down payment.
- The debt-to-income ratio is calculated into eligibility to ensure comfortable living conditions and reduction of forclosure.
- Although you do not need to be an American citizen to qualify for an FHA loan, you must be in the United States legally and have a valid social security number, and have proof of residency in the U.S. for at least two years.
- Must prove two-year employment history — gaps in employment do not automatically disqualify you!
Previous foreclosure or history of bankruptcy does not disqualify hopeful homeowners.
While FHA loans are a great option for many homebuyers, they do come with certain restrictions and limitations that are not found in more conventional mortgages. The Delgado team closely studies your financial situation and works with you to determine which mortgage option is right for you. If it’s an FHA loan, we are ready to get the ball rolling so you can start searching for your dream home.
Call The Delgado Team today to get started and schedule your free consultation.