Alabama FHA Mortgage Lenders – FHA Home Loan Alabama

The FHA mortgage program was created by the Federal Housing Administration with the intention of making homeownership a possibility for more Americans. FHA mortgage lenders give Alabama home buyers the opportunity to qualify for a mortgage with a 3.5% down payment and without perfect credit. FHA loans allow you to borrow up to 96.5% of the value of a home with an FHA loan (meaning you’ll need to make a down payment of only 3.5%). You’ll need a credit score of at least 580 to qualify. If your credit score falls between 500 and 579, you can still get an FHA mortgage provided you can make a 10% down payment.With FHA loans, your down payment can come from savings, a financial gift from a family member, or a grant for down-payment assistance. Some Alabama mortgage applicants with great credit scores who take advantage of the FHA mortgage still utilize the higher debt to income ratio guidelines and lower downpayment options. With an FHA mortgage seller can contribute up to 6% of the sales price towards the borrowers closing costs and prepaid taxes and insurance. And FHA makes it easy to buy a home after a credit event, there is a 3-year seasoning requirement for a foreclosure, 2-year seasoning for a chapter 7 bankruptcy, and 12 months for a chapter 13 bankruptcy. The FHA mortgage does set caps on the allowable loan amount you can check your maximum FHA mortgage amount by visiting this FHA loan limits link.

FHA MORTGAGE LOANS HAVE MINIMAL DOWNPAYMENT AND CLOSING FEES:

• Down payment is only 3.5% of the purchase price.
• Gifts from family or Grants for down payment assistance and closing costs!
• The seller can credit buyers up to 6% of the sales price towards buyers’ costs.
• No reserves or future payments in the account are required.
• FHA regulated closing costs.
  

  
  FHA MORTGAGE LOANS ARE EASY TO QUALIFY:

• Purchase a Florida home 12 months after a chapter 13 Bankruptcy 
• Purchase a Florida 24 months after a chapter 7 Bankruptcy.
• FHA will allow an FHA mortgage 3 years after a Foreclosure.
• Minimum FICO credit score of 580required for96.5%financing.
• Bad credit Florida FHA mortgage approvals minimum FICO credit score of 550 required for 90 FHA financing.
• No Credit Score Florida mortgage loans & No Trade Line Florida FHA home loans.

FHA LENDERS ALLOW HIGHER DEBT TO INCOME & EASIER JOB QUALIFYING:

• FHA allows higher debt ratios than any other Florida home loan program.
• Less than two years on the same job is OK!
• Self-employed buyers can also qualify for FHA.
• Check Florida FHA Mortgage Articles for more information.

If the Minimum FHA Mortgage Credit Score is at or above 580+ the FHA mortgage applicant is eligible for 96.5% Financing. Our Minimum Credit Score for an FHA mortgage is 500. If the Minimum FHA Mortgage Credit Score is between 500 and 579, the FHA mortgage applicant is limited to a maximum loan-to-value (LTV) of 90 percent of the loan amount..

FHA MORTGAGE LENDER’S MIP REQUIREMENTS 

The great benefits of the FHA mortgage loan program are made possible by mortgage insurance premiums or MIP. Two different fees with an FHA mortgage, these fees are called mortgage insurance premiums or (MIP). The FHA up-front mortgage premium of 1.75% of the purchase price will be added to the balance of the FHA loan. The second premium is paid with your monthly mortgage payment. The monthly premium is about .85% of the loan amount divided by 12 .  The FHA MIP rate is based on the total loan amount, your loan-to-value ratio, and the length of the FHA mortgage.

4 C’S LENDER REQUIREMENTS CHECKLIST

1-Collateral/FHA Approved Property Types Include- Single-family homes, Townhomes, villas, 1-4 family multi Unit Homes, and  FHA Approved Condos!

2-FHA Minimum Cash/Down payment Or Equity– FHA 3.5% Down Payment Cash or 20% Equity/ 80% LTV for cash out or 96.75% Rate term Refinance- Verity the borrower has the down payment from an acceptable source on a purchase or enough equity to cover payoffs and closing cost to include taxes insurance on a refinance.

3-FHA Minimum Credit 500+ Credit Score – Does the borrower have the minimum credit score to meet the loan program? Does the borrower have collections that have to be paid off that will reflect the cash needed to close? Do student loans that are deferred need to be added to the monthly obligations? Does the lender require %1 cumulative student loan or 5% of the cumulative collections accounts over +$2000 added back to the debt to income ratios.

4-Capacity-56.9% FHA Maximum-  Does the FHA mortgage applicant’s debt to income ratio meet the loan program requirements or no more debt than 56.9% of the total housing + all monthly payments reflected on the FHA mortgage applicants credit report.