If you're considering buying property in Terrebonne, LA you might be curious about what the benefits of a Federal Housing Administration's (FHA) loan are? The first benefit is the borrower can have a FICO score of as little as 580-680 to qualify with the average mortgage lender. Sun Mortgage Funding only requires a minimum credit rating of 640. Second, the down payment starts as low as 3.5% and goes up to a maximum of a 10% minimum down payment. Third, the maximum debt to income ratio is 31%. The fourth reason is the income requirements are considerably less restrictive. The monthly mortgage payment can be up to 43% of your income.
The additional documents required when applying for an FHA loan are tax returns for the two previous years, income verification and proof of origin for your down payment. The down payment cannot come from borrowed funds; it must be from saved monies or a gift. The reasoning behind this rule is to protect both the borrower and the mortgage lender from the borrower over extending himself financially.
An FHA mortgage offers many advantages to lower income borrowers. It is easier to qualify with your credit score and lower income to debt ratios and down payments required. In order to offer those conveniences, the Federal Housing Administration must insure your mortgage. This requires that the borrower pay a mortgage insurance premium, traditionally referred to as a PMI or Private Mortgage Insurance. This insurance protects the lender should you default. If you can afford to put as much as 20% down, you can eliminate this additional charge.
With houses still hovering at or slightly above their lowest prices and the current very low interest rates, today is an opportune time for many would-be homeowners to apply for a mortgage. Get your new mortgage with Sun Mortgage Funding. Our helpful and knowledgeable consultants can help you select the appropriate loan for your unique financial situation. We will help you choose between the various loans available, including 30 year fixed, 15 year fixed and a countless list of ARM's and ARM hybrids.
There are no upper income limits for FHA loans. Borrowers with compromised credit and a larger income can still qualify. There are, however limits on the loan totals. Only single family homes up to $217,050, duplexes up to $347,000, tri-plexes up to $419,245, and four-plexes up to $521,250 are eligible for the loan.
A mortgage loan could be the start of a new chapter for your family life. Your dream of owning that home in Terrebonne, LA can be realized this year. Take the first step and apply for an FHA loan with Sun Mortgage Funding.