This is an especially good loan for first-time homebuyers who have not had time or resources to stash money for a down payment. This is our FHA Loans application guide.

With FHA Loans you have access to government-backed mortgages which guarantee you will never default on your payments. This makes it easier for you to get the loan with banks.

Before diving into the application process for this loan, let’s take a look at the eligibility requirements you must meet.

In order to be eligible for FHA Loans you must have a FICO score of at least 580 so that you only need 3.5% for a down payment.

You may also be eligible with a FICO score below 580, but you will need 10% for a down payment.

You also must have a MIP (Mortgage Insurance Premium) and a debt-to-income ratio below 43%.

In addition to that, the home you are buying must be your primary residence, and you must have a steady income, as well as proof of employment.

First, you must look for an FHA-approved lender. Most banks and mortgage companies offer FHA mortgages, so it should be easy for you to find one.

Banks, mortgage brokers, credit unions and online lenders are some of the institutions where you can get FHA financing. 

Not all lenders accept the FHA minimum credit score of 580, so you need to make sure the one you have found does.

You can find lenders which work person-to-person, over-the-phone or even online. Choose whichever suits you best.

Provide the lender with your basic details. This includes your full name, Social Security Number, your driver’s license or other ID, income information, employment history, etc. 

You will also need to provide supporting documents so that the lender can verify your income, savings and debt. 

Then, after submitting your application, you should receive loan estimates within three business days.

Make sure the loan offers you receive are quoting the same loan term, loan type and amount so that you can compare interest rates, APR and other upfront fees. 

Once you have compared and found the best match for your needs and financial conditions, you can submit your application.

If you have already found a home you wish to buy, an FHA-licensed inspector will inspect the home, and once that is done and approved, you will get your loan.

If you are looking for another loan for people with bad credit, you should check out ElectroFinance. 

ElectroFinance Lease offers a rent-to-own program where you can purchase all kinds of electronics online, and pick them up at the nearest BestBuy store. 

With this company you can lease electronics with the ability to buy them later even if you have bad credit.

Sounds interesting? Then hit the link below and learn everything you need to know about it.