subject: FHA Loans For People With Bad Credit History Are Now Available [print this page] FHA Loans For People With Bad Credit History Are Now Available
Federal Housing Administration Loans or FHA loans in short are offered in United States to people for buying a new home or construction of additional home. Good news for prospective borrowers is that they are not going to face the usual constraints of bad credit for procuring such loans. FHA Loan Features Some of the basic features of FHA loans are as follows. It is available for new buyers as well as existing home owners. FHA refinance loans are available for borrowers. It will help them save money towards monthly interests. Traditional mortgage lenders often charge higher interest rates but the mortgage interest rates in case of FHA loan are lower and therefore affordable. People with good credit score are welcome to obtain the loan but people with bad credit are not deprived of the loan. FHA Loan Concept Basic concept of the mortgage loan plan is to provide people with finance for buying new home or expanding the existing home with additional construction or buying at lower interest rates. While bad credit might be a blemish for the borrower it will not make them ineligible to apply for the loan and they can also avail the specific benefits with such loans like 100% mortgage financing without any amount being held back by the lender; Down payment of less than 3% is also available for people with bad credit scores; and
Borrowers need not be concerned about FICO scores. Factors Taken into Consideration It does not mean that the FHA loan is no tag loans. In fact there are certain pre-conditions that are to be fulfilled by the prospective borrower interested in buying another house or trying to obtain mortgage services. Some such factors are Credit score of the prospective borrower will be reviewed by the loan officer.
If credit report is bad, the reasons will be assessed.
Such reasons that justify rejection or granting of mortgage finance could be any of the followings Loss of jobs in which case the loan officer cannot establish source of repayment. People having full time employment and sufficient income to cover the installments but is running bad credit score will be eligible for the FHA loan. People that are getting transferred from the present place of posting may not get the loan at the place of original posting. Serious illness of prospective borrower and medical preconditions will also jeopardize his or her chances of getting the loan. Any prospective borrower should take care of the above aspects before applying for the FHA loan.
