| > | | | | - No Credit Score Requirement |
| Learn some FHA basics. | | | | - Recent loan limits increased-varies from state to |
| FHA loans are loans that are insured by (HUD) | | | | state. For example you can buy a home in the state |
| Housing Urban and Development. FHA loans have | | | | of Texas with FHA up to $271,050. Depending on if |
| been around since the 1930's right after the "Great | | | | your state is a high cost area; obviously this loan limit |
| Depression." This was when 4 out of 10 households | | | | would be higher. |
| owned a home. (FHA) Federal Housing Administration | | | | - Will allow alternate lines of credit if not good history is |
| is the savior for our current market just like it was | | | | on credit report. |
| back during the roaring 30's.With FHA loans especially | | | | Example: |
| during a credit crunch like we are currently are in, you | | | | 1. Letter from any utility company stating you have |
| can rest assure banks are willing to be more lenient to | | | | been on-time with your payment history for that last 12 |
| approve credit challenged borrowers with FHA | | | | months. |
| financing. The reason is FHA loans are insured by | | | | 2. 12 month payment history from car insurance |
| HUD, and if the borrower looses the home HUD will | | | | company, cell phone company and even daycare will |
| pay a claim to lender for the loss. FHA is the largest | | | | work. |
| single insurer of loans in the world. | | | | If you are currently in the market to buy or maybe you |
| FHA Advantages. | | | | feel like you need credit repair, what ever your |
| - Lower interest rates, typically interest rates are lower | | | | direction is, getting a FHA loan is not as hard as you |
| on FHA loans with the banks since they are | | | | think. FHA gets people approved that may not get |
| government insured loans | | | | approved with other loan types. The first step is to |
| - Only requires minimum investment from borrower of | | | | examine where you are at with a lender and get the |
| 3% down payment, which can be eliminated by Down | | | | ball rolling. IN this current market some lenders are |
| Payment Assistance. So essential you can get a 100% | | | | requiring you to either have a 580 credit score or |
| financing with FHA loans. Note: Requires Seller | | | | higher. They will also allow no credit score but your |
| participation | | | | interest rate is higher than current market rates. This is |
| - If you have less than perfect credit you can typically | | | | going on even though FHA has no credit score |
| can get a loan with FHA, they usually like to see 12 to | | | | requirement; this is due to bad performance of loans |
| 24 months clean credit report history. You can even | | | | below the credit score benchmark of 580. |
| get a loan while in chapter 13 bankruptcy. | | | | |