subject: Qualifying For An Fha Mortgage [print this page] FHA mortgages have risen in demand since the onset of the credit crisis, which made qualifying for a traditional mortgage more difficult. Not only are FHA mortgages insured by the Federal Housing Administration (FHA), they were created to target borrowers who had difficulty meeting the stricter requirements of conventional loans. Required down payments for FHA mortgages are typically lower, as are the interest rates.
Credit requirements are also relaxed. A minimum score of 620 is necessary to apply, with less than two late mortgage payments in the past two years. A individual bankruptcy can still be considered as long as it is past one year since the bankruptcy discharge. Any civil-judgments must be paid off before closing.
Though the FHA mortgage is easier to qualify for than any other mortgage, borrowers must still have the following documentation on hand in order to qualify for an FHA mortgage:
Borrowers will need to pay for a credit report and appraisal of the property.
Social Security numbers
Residence addresses for the past two years.
Names and addresses of your employers over past two years
One month of current pay stubs
Names, addresses, account numbers and balances on all checking and savings accounts
Names, addresses, account numbers, balances and monthly payments on all open loans
Addresses and loan information of other real estate owned
Estimated value of furniture and personal property
W2s for the past two years. For self-employed individuals, you will need to provide personal tax returns for the past two years, current income statement and balance sheet for the business
Divorce or separation agreements
If you live in New Jersey and have any questions these documents requirements or on FHA mortgages in general, please contact us at Bond Street Loans. Were experts not only in FHA mortgages, but in the mortgage process for home-buyers and home-owners alike.
