Thinking of FHA loan as an option to financing your Alabama property? Get some info before you buy.
There has been a lot of uncertainly lately regarding the FHA Loans and its important that they are cleared up. These loans can be used to help you with your second home or rental property. These loans can be used by any person under the right circumstance. One of the exception to this is that a person can not have another FHA loan out already.
An advantage of having a FHA loan is that the person applying does not have to provide their FICO scores. However, a person applying for FHA loan can not be in bankruptcy. They can apply for the loan if it is two years after they applied for bankruptcy. Some people then wonder if they can still apply if they have been through a foreclosure. The answer to this is YES, with the exception that they have held excellent credit three years after this foreclosure. so basically, f you have had past financial problems such as foreclosures and bankruptcy you are still able to get a FHA loan as long as your recent credit is good.
Whoever is applying for this loan needs to have any outstanding collection accounts paid off. Credit Repair specialists can help you with this. Another advantage to the FHA loans is that they are able to refinance existing loans. If you are looking to lower your month mortgage payments or change your adjustable rate mortgage to a fixed mortgage, FHA might be an option.
Most people believe that if they have a tax lien on their property they can’t qualify for an FHA loan. The good news is those people are wrong – they can qualify as long as they have a set-up payment plan with the IRS and have kept up with that for a half a year.
Other people wonder if they can ever get rid of the FHA distinction in their loan. The answer is yes, once a person has earned 20% equity on their homes they are able to get rid of the FHA part of the loan.
If you would like you can have a person co-sign with you for the FHA loan. This does not mean that the co-signer has to live with you. The co-signers whole financial background will be considered when you are applying. The FHA can not be listed under their name. It has to be listed under the name of the person that is going to be residing in the property.
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