What are the qualifications for an FHA Loan?
For starters, you will need proof of income and employment, along with the pre-established means to cover a down payment and closing costs.
Your debt-to-income ratio (FHA loans require less than 43%) is all your monthly debt payments divided by your gross monthly income. Lenders use this number to predict your ability to manage monthly mortgage payments.
You will also need to provide a down payment on the home. FHA loans allow for down payments as low as 3.5% of the cost of the property.
Mortgage insurance is an insurance policy that protects a mortgage lender or titleholder if the borrower defaults on payments, dies, or is unable to meet the contractual obligations of the mortgage. FHA borrowers may receive lower mortgage insurance rates than they would with other loan types.
As of 2019, that limit for most of the country is $484,350. That limit can go higher in counties where the housing costs tend to exceed the national average – up to $726,525 in some cases.
AnnieMac Home Mortgage (American Neighborhood Mortgage Acceptance Co. LLC) is not affiliated with the U.S. Department of Veteran’s Affairs, the U.S. Department of Housing and Urban Development, the U.S. Department of Agriculture or any other Federal Government Agency.