Buying a home is one of the most important purchases you will ever make in your life. The Federal Housing Administration (FHA) is part of Housing and Urban Development (HUD) and may insure a loan so the lender will provide you with the best deal possible. You may be able to obtain FHA loans with no credit and with a low down payment. FHA loans are ideal for many people.
Benefits of FHA Loans
FHA loans with no credit are helpful for those who do not have previous credit that is typically used to determine loan eligibility. Instead, the FHA takes on the responsibility of insuring the loan so that lenders will be able to provide you with the loan that you need. Government housing loans are subject to eligibility guidelines.
Some of the benefits of FHA loans with no credit include the ability to obtain a loan with a low credit score and the ability to use gifted funds for the down payment and closing costs. This means that you don’t have to have a large amount of savings built up in order to obtain a new home loan. You can have a minimum credit score of 560 with manual underwriting and 500 with automated underwriting.
Down payments are typically less than with other types of loans and you may be able to have a down payment that is as low as 3.5% of the payment price of the home. FHA loans with no credit are available for conventional homes as well as for manufactured or mobile homes.
FHA loans are also available for home renovations. If you are in need of updating your home, a home loan may be the best way to make the improvements that you need. Renovations can increase the value of your home and make it more beautiful and energy efficient.
Applying for FHA Loans
You can apply for FHA loans with no credit through an easy online process. You should gather some important information before you begin the application process. If you are filing a joint application both parties will need to supply information. You will need your personal information, employment and income details and assets and liabilities. You will also provide the name of your real estate agent if you have one.
Once the application is complete, submit it through our secure online website. Our mortgage team will review your application and a loan officer will be assigned to your application. The loan officer will contact you if any further Information is necessary to process your application. You will be contacted with the status of your application and a determination as soon as possible.
A government insured loan is very desirable because you can often obtain this type of loan more easily than other types if you don’t have a good credit score. Our in-house FHA Direct Endorsement Underwriter is available to provide fast decisions on your loan. Contact us today to learn more about FHA loans and to get started on the loan application process.