Blog, FHA, Loan Programs

What is an FHA Loan?

What is the FHA?

The Federal Housing Administration is an agency of the federal government. The FHA insures private loans issued for new and existing housing, and for approved programs for home repairs. The FHA was created by Congress in 1934, and in 1965 became part of the Department of Housing and Urban Development’s Office of Housing.

The FHA’s mission in the present day includes offering help borrowers get the amounts they qualify for, and to assist lenders by reducing the risk of issuing loans. To get situation-specific information and advice on how you might be able to take advantage of an FHA-insured loan, you’ll need to contact us and get started.

I have credit problems; will this hinder my chances of getting an FHA loan?

The FHA recommends a Credit Repair program for anyone who fears being denied a loan as a credit risk. We offer an in house credit evaluation and restoration program.

You should, as a rule, be in a satisfactory payment situation for at least one year before applying for any FHA loan program. FHA is usually pretty lenient on “OLD” collections/charge offs as long as you are able to provide a good explanation of what caused them.

Our credit counselor can address issues such as income-to-debt ratio, how to maintain satisfactory payments for the required time and challenging unfair or erroneous entries on your credit report. The FHA uses common sense Underwriting, call 972-422-9016 x 500 or click here today to get started.

What kinds of information will I need to gather to get started with the FHA?

The FHA Underwriter will ask for a lot of information, which will go on your loan application. Be sure to ask your loan officer for a complete list of required data and give yourself plenty of time to gather the information. Click here to download a list of normally required documents.

You will need to provide the FHA with a wide range of details; this includes all the addresses where you have lived in the previous two years, your employers name and addresses for the last two years, plus the amount of your Gross Monthly Salary. If you have had multiple jobs over the last twenty-four months, you will need your W2s for all of them.

If you are Self Employed you will need your income tax forms submitted for the last two years. If you don’t have copies of your W2s, you should contact your employers for assistance. If you need replacement copies of your income tax returns, go to IRS’ site and follow the instructions on how to order replacements. A tax transcript is free of charge, and copies of actual tax returns cost around forty bucks.