An FHA loan is a loan that is issued by a federally qualified lender and that is insured by the FHA (Federal Housing Administration). This loan is meant for low- and mid-income borrowers who are not able to pay the large down payments of regular mortgage loans. With this loan, you will only be required to make a 3% down payment and the rest will be provided. Even the 3% down payment can come from a grant or a gift. If you are in Tucson, Arizona, there are several tips that will ensure your FHA loan Tucson application is successful.
For your loan application to go through, provide all the information that the loan officer requires. Failure to provide some information will lead to delay in processing your FHA loan or even rejection of the application. You are required to provide your residential address for the past 2 years, your Social Security number, the location and names of your employers for the past 2 years, your gross monthly salary, and pertinent info for all savings and checking accounts and all open loans. You are also required to provide information for any other real estate you own, the approximate value of al your personal property, current check stubs and W-2 forms for the past 2 years, and tax returns for the past 2 years. You will be required to pay for an appraisal of the house you want to buy and for a credit report.
There are several fees that you have to pay. The amount to pay is determined by the local LHA office. These fees, collectively, are called closing costs. You should be prepared to pay lender’s origination fees, deposit verification fees, attorney’s fees, inspection fees like appraisal fees, cost of title examination and insurance, and document preparation (by a 3rd party). Others are test and certification fees, recording fees, transfer stamps, and taxes, credit reports, and property surveys. If going for FHA refinance loan, you also expect to pay wire transfer fees, reconveyance fees, fees to pay off bills, and courier fees.
If you want your FHA loan Tucson application to go through, do not borrow more that you can afford to comfortably pay. This is because there are FHA requirements and guidelines that are aimed at ensuring people do not borrow more than they can afford. Loan officers consider such things as mortgage payment expense to effective income ratios and total fixed payment to effective income ratios when determining qualifications.
Solve any credit issues that you may have before borrowing to increase your chances of securing the loan. Work on your credit score because lenders factor in poor financial judgment, slow payment, and delinquent accounts when determining qualification.
Go to a well-established FHA-approved broker or lender who is certified by the NAMB. You could increase your chances of securing an FHA loan by having a co-signatory (such as a parent for a kid who is fresh out of college) or a non-occupant co-borrower.
If you are planning to buy a house and you are looking for a suitable mortgage loan, then you should consider FHA Loan in Tuscon. FHA stands for Federal Housing Administration. Visit homeloansforfamilies.com for more details.