I just got approved for an FHA mortgage, but I know that my husbands credit and mine are only in like the 550's because we just finished paying off old debt and cleaning up our credit.
2007-09-21 10:08:18 · 7 answers · asked by Ash1227 2 in Business & Finance ➔ Renting & Real Estate
It's a mortgage guaranteed by the Federal Housing Administration. They have a minimal down payment requirement and credit scores do not pay a critical part in qualifying. Your debt-to-income ratio is king here, more than anything else.
2007-09-21 10:12:27 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
FHA loan is a federal assistance mortgage loan in the United States insured by the Federal Housing Administration. The loan may be issued by federally qualified lenders.
FHA loans have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. The program originated during the Great Depression of the 1930s, when the rates of foreclosures and defaults rose sharply, and the program was intended to provide lenders with sufficient insurance. Some FHA programs were subsidized by government, but the goal was to make it self-supporting, based on insurance premiums paid by borrowers.
Over time, private mortgage insurance (PMI) companies came into play, and now FHA primarily serves people who cannot afford a conventional down payment or otherwise do not qualify for PMI insurance.
2007-09-21 10:23:34 · answer #2 · answered by cauzntrouble 2 · 1⤊ 0⤋
An "FHA loan", or an "FHA mortgage", is not really a loan, it's a loan made by private sources that is insured by FHA. FHA provides mortgage insurance, not the loan itself.
The FHA program started in the 1930s and continues today. People who obtain FHA loans are generally low to moderate income who would not otherwise be able to secure a loan without government backing.
2007-09-21 10:16:38 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Federal Housing Authority.
Word of warning: beware of variable rates and graduated increases in payments.
It is heartbreaking to get a first home and then lose it through foreclosure because the payments are too high.
2007-09-21 10:12:59 · answer #4 · answered by Anonymous · 0⤊ 0⤋
FHA STANDS FOR FEDERAL HOUSING AUTHORITY AND AS SUCH IS A GOVERNMENT PROGRAM WHICH CAN GET YOU A LOWER ANNUAL PERCENTAGE RATE AND SOMETIMES LOWER MORTGAGE PAYMENTS. AND IT'S POSSIBLE THE GOVERNMENT MAY GUARANTEE THE LOAN
2007-09-21 10:13:49 · answer #5 · answered by Loren S 7 · 0⤊ 0⤋
a government loan that is insured by the federal government.
ONLY VA LOANS ARE GUARANTEED.....not FHA
helps ppl with low scores of 350 to live the american dream with 2.25% down payment...and helping homeowners get 6.75% mortgage rates or lower!!!!!
2007-09-21 10:17:02 · answer #6 · answered by Anonymous · 0⤊ 0⤋
bostonianinmo --- he has it right!
2007-09-21 10:19:20 · answer #7 · answered by Chuck92121 2 · 0⤊ 0⤋