Life can be unpredictable. From time to time, we can all struggle financially. Unforeseen events and circumstances can occur. Sometimes, our income takes a dive. Expenses and bills pile.
Even so, there is help. If you need a loan for your home and don’t have a high income, and somewhat high debt-to-equity ratio, an FHA loan may be perfect for you. If you dream of a home, your dream may come true.

The FHA Loan Philadelphia Needs

FHA loans are helpful for many reasons. Issued by an FHA-approved lender and insured by the Federal Housing Administration, these loans can be a great choice for low-income borrowers. In fact, FHA loans have more lenient requirements for down payments and credit scores than most conventional loans.

In 2019, people were able to borrow as much as 96.5% of their home’s value with an FHA loan. Your credit score could have been be at least 580. Furthermore, in some cases, people with the credit score between 510 and 579 were still able to be approved for an FHA loan, provided a 10% down payment. However, some borrowers are able to pay as little as 3.5%.

If you have already received an FHA loan, you can quickly refinance. The FHA Streamline Refinance Program works for this case.

When trying to get approved by an FHA loan, you should look for top FHA Lenders Philadelphia uses, or at least an experienced broker who is willing to provide guidance and assistance.

The streamline program allows you to refinance your FHA loan quickly. You don’t have to fill out a lot of paperwork. You often don’t need an appraisal. Usually, you don’t need your income verified either. You don’t even need a full credit check. Overall, you spend much less time.

There are, however, some requirements. Firstly, you need to have an FHA-insured loan. In addition, you must have paid your mortgage over the past 12 months on time. Moreover, your loan cannot go over your original FHA loan amount. However, you can get your home reappraised to see if the value is higher.

If you want a streamline loan, you don’t have to meet with a loan officer. This saves a lot of time and hassle. If your lender allows, you can simply apply by phone or on-line. You may have to sign some papers before mailing.

Overall, the FHA Streamline Refinance Program can make the whole process easier.

FHA Loan Rates

Before making a down payment for your FHA loan, understand the sources. In general, down payments for FHA loans may come from several sources. You can pay through your savings. You can use money from a family member. You can also use a grant.

Your home must simply meet FHA basic standards. The FHA only insures loans for single-family and multi-family homes. These homes must be in the U.S. or its territories.

As one of the biggest home lenders in the world, the FHA is well-known. It has helped millions of homes to get an FHA loan.

When taking an FHA loan, you will have to pay a premium. This is called a mortgage insurance premium (MIP). It is paid on all loans with a down payment under 20 percent. The point of the MIP is simple. It protects the lender from losses.

Other loans have MIPs too. However, most of those premiums can be avoided. The FHA loan is different. Given its low payment rate, the MIP is required. Again, this protects the lender in case an FHA loan borrower defaults.

You should contact an FHA Company Philadelphia can trust from the start. Brokers can further explain the details of an FHA loan application process. You will also need to have a debt-to-income ratio (DTI) below a certain percent.

DTI is important for many reasons. It shows that you are not too risky. If you have too much debt, you may be a problem for lenders. You may be untrustworthy. The DTI shows what you owe compared to what you earn.

Debts include things such as rent, credit cards, and your mortgage. The DTI is expressed as a percentage. It is the debt percentage of your income before taxes.

If you are unsure about this or anything else, don’t delay. A top FHA loan companies can assist. You can get pre-approved. You can get verified and approved. At Latitude Financial, our brokers are experienced and ready to assist. Get started on your FHA loan today.