FHA loan first time home buyers - The FHA can help any first time Home Buyers

If you have a bit 'of money or no money at all for a deposit, credit risk and a lot of bills, the FHA mortgage could help you buy your dream home.

The FHA or Federal Housing Administration, a vital part of the Housing and Urban Development, was founded 70 years ago to help FHA first time home buyer, especially those individuals with low and middle-income minorities, to obtain home loans they need.

The amount you can have access and will allow the FHA, has been greatly increased, allowing more borrowers to qualify for these loans.

The new maximum value varies from $ 271,050 for single family in places not expensive for $ 729,750 in expensive cities like San Francisco and New York. The maximum amounts are determined by estimating the price at 115% of the house a middle position.

This is considered a great improvement to that of the old limits totaling $ 200,160 to $ 362,790 - a limitation that did the FHA mortgage insufficient all the way through parts of California and parts of north-east.

As a first time buyer the FHA could ask what you can benefit from it. Here's a quick answer to this:

Advantage # 1 - You are not required to provide a huge deposit and the lender to get help looking for this.

The FHA will ask you to deposit at least 3%. So it will cost about $ 30 for every $ 1000 that is to borrow.

If you do not have the amount, will never be a problem. If you can donate from your friends, relative, or an association that give financial aid.

The FHA is known for working with local government programs that extend their contribution through payment, closing costs and loans with low interest rate. Your lender should be willing to explain how they work.

Advantage # 2 - Your credit score should not be too perfect.

You credit rating is not so important as the FHA does not make use of it to see if you qualify for a loan or not.

There are more than 22 factors that go with calculating your credit rating, which includes how much credit you have, how much credit you normally use and how to apply a credit. The FHA does not actually relate to this problem when it comes to determining whether or not you will get the loan.

Advantage # 3 - You can still buy more debt.
The debt-income ratio may be significantly higher for an FHA mortgage than that of conventional mortgage. And the FHA limits have been extended to provide home ownership to a lot of people.

To find out where you should stay, calculate mortgage payments as a whole hazard insurance, interest, taxes, mortgage insurance and the main responsibility for your regular monthly, as auto loans, credit cards debts, child support, and loans for students. Then divide the total by the amount of his gross monthly income.

You may be eligible for FHA mortgage, even if it's the first time to buy a house, provided that the monthly debt payments not exceed 43% of sales ....