| Here are a few rules when considering an FHA loan. | | | | turned on, etc). |
| - You will need some credit. However, you can use | | | | -FHA requires a down payment of 3% of the sales |
| credit reference letters from utilities companies if you | | | | price. However this down payment can be obtained |
| have no credit history. | | | | from several sources (borrowers' savings, family gift, |
| -If you have minor collections, it is possible to still get | | | | grant/loan from First Time Homebuyer Assistance |
| approved if you have other strong accounts on your | | | | programs, Gift from Non-Profit Organization). On Oct. 1, |
| credit report. | | | | 2008 the down payment assistance programs will no |
| -Verified income. FHA will require proof of income. It | | | | longer be available. If you need this down payment |
| can be very difficult to obtain FHA approval if you're | | | | assistance, I would recommend meeting with a lender |
| self-employed, although not impossible. I would | | | | ASAP. |
| recommend meeting with a lender who uses FHA to | | | | -FHA doesn't require any minimum credit score, but |
| see if you qualify. | | | | most lenders will require a minimum score of 500 - |
| -Although FHA property guidelines have eased up a | | | | 580. |
| little, major systems will need to be working at time of | | | | -FHA allows for manual underwriting if the FHA |
| inspection (heating/AC, water turned on, electricity | | | | automated approval system doesn't approve the loan. |