There are advantages to purchasing a home with an FHA mortgage, such as lower down payment and credit score requirements. There are many potential buyers who are eligible for an FHA mortgage and they don't even know it!
- 3.5% Down Payment
- 580 minimum credit score
- 2 years of verifiable employment history
- Debt to Income ratio of 56% or less
Another advantage of an FHA mortgage is lower closing costs, with allowable seller credit of up to 6% and many great down payment assistance options currently available, some buyers are able to purchase a home for as little as $1,000, excluding items paid prior to closing such as loan application fees and home inspections.
Contacting a mortgage lender is the best way to find out if you're eligible for an FHA mortgage. Getting pre-approved is really the only way to know if you're able to buy a home.
Once a buyer takes the 1st step of getting pre-approved for a mortgage, Dewberry Realty is here to guide and assist them in finding the right home to meet their needs!
Buying a home after bankruptcy or foreclosure
Just because you've filed for bankruptcy or been through foreclosure doesn't mean you can't qualify for an FHA mortgage.
Chapter 7 Bankruptcy - Must be 2 years from the date of discharge and applicant must be able to show 2 years of good credit history. Some applicants may be eligible after 12 months if bankruptcy was caused by extenuating circumstances beyond the borrowers control.
Chapter 7 Bankruptcy - Must be 2 years from the date of discharge and applicant must be able to show 2 years of good credit history. Some applicants may be eligible after 12 months if bankruptcy was caused by extenuating circumstances beyond the borrowers control.
Chapter 13 Bankruptcy - Must be in good standings for at least 1 year with satisfactory history of on-time payments. Applicant must also receive written permission from bankruptcy court to enter into mortgage transaction
Foreclosure / Deed in lieu - Must be 3 years from date of foreclosure. The lender may grant an exception to the 3 year requirement if the foreclosure was the result of documented extenuating circumstances that were beyond the control of the borrower.
Short Sale - An applicant who participated in a short sale may be eligible for an FHA mortgage if the borrower was current with monthly payments in the 12-month period prior to short sale. If the borrower was in default at the time of short sale, they won't be eligible for an FHA mortgage for at least 2 years after sale date.
The road to home ownership could be closer than you think!
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