This mortgage product is partially insured by the Federal Housing Administration (FHA). This insurance lessens the lender’s risk to lend money and it allowing borrowers to qualify for a mortgage loan through increasing the limit on the debt to income ratio, lowering credit-qualifying criteria, and lowering closing cost.
Benefits & Features
Non-occupying co-borrowers accepted.
Permanent and non-permanent resident aliens allowed.
Down Payment starting at 3.5% with no reserves.
Down payment can be gift from a relative.
Up to 6% of closing cost can be contributed by the seller.
Minimum Fico Credit Score starting at 580
No Bankruptcy Chapter 7 or 11 in the last 2 years from discharge or dismissal date
No Bankruptcy Chapter 13 in the last year from discharge date with timely repayment.
No Foreclosure, Short Sale, or Deed-in-lieu in the last 4 years.
The loan process many times boils down to what you can afford. A good way to check your potential finances is to utilize a monthly payment calculator such as the one found here with Ready Mortgage Lenders.