Buying a home is not easy. No matter who’s buying the property it can be an arduous process. You have to find a property that’s acceptable for you, then negotiate a price, and you also have to go through paper work, home inspections and put together the documents and costs you need for the closing. And that’s if the process runs smoothly. For more than a few prospective buyers there’s another major difficulty. It can be difficult to afford property or to buy the home that’s consistent with your personal needs.
Cliffco Can Help You Achieve the Dream of Home Ownership
Cliffco Mortgages wants you to know that there are loan programs available to those who may not have the assets to be approved for traditional mortgages. One thing to consider is a loan guaranteed by the Federal Housing Administration (FHA). Cliffco is committed to helping our clients achieve the dream of home ownership and we want you to know how FHA loans can assist home buyers in achieving that dream.
FHA Loans Explained
FHA loans can mean the difference between being able to purchase a home or not for potential buyers who have low credit scores. The FHA has been offering help since the 1930s. They will insure home loans for buyers who might not normally be approved by banks otherwise. There are several features of FHA Loans that make them attractive to home buyers that may otherwise have difficulty making the purchase.
Among them are low down payment options. FHA loans don’t demand that home buyers put up as much cash as is usually required. According to the Balance website, FHA loans will let you buy a home with a down payment as low as 3.5 percent. You can also get outside assistance in putting together a down payment. For example, a relative of the buyer can gift money.
How to Qualify for FHA Loans
Home buyers applying for FHA loans can often get funding for their purchase even if they have poor credit scores. But there is a background check. According to the FHA website, you must be able to show that you’re employable and demonstrate job stability You need to demonstrate that you’re able to hold a steady job for at least two years with the same employer. Your income should remain consistent and it’s preferable to show an increase in income. If you have a foreclosure or bankruptcy on your record it must be at least three years old. The FHA does impose limits on the amount of the loan. Those limits will vary based on what state you live in as well as your county of residence. The limits also change periodically and you need to monitor those changes. You can find out what those limits are on the Department of Housing and Urban Development website.
Cliffco Will Explain Your Home Loan Options
If you’re not certain you can afford a traditional mortgage or if you want to see what options are out there for you, Cliffco Mortgage Bankers can help. We’ll help you see what types of mortgages you may qualify for and get you on the road to home ownership. Contact us today.