Home Loan Financing FAQ

Home Loan Financing FAQ

 What kind of credit score do I need to qualify?

■ The lender will require a minimum of 640 middle score from each of the 3 credit rating bureaus.

 What payment history do I need to show the lender?

■ The lender will require the most recent 12 month payment history showing no 30 day late payments whether by renting or owning a house.

 What if I have had a bankruptcy in the past?

■ You can purchase a home if the bankruptcy has been dissolved within a 24 month period or a 36 month period if a previous home was in a bankruptcy.

  Is an FHA loan just for first time homebuyers?

■ No, this is a government secured loan by the Federal Housing Administration available for any buyer. Keep in mind they have maximum loan amounts per your county.

 What kind of down payment is required for a loan?

■ Buyers need a minimum or 3.5% to secure a loan, the funds of which can be gifted from a family member, employer or any other approved institution.

 Do I need a job to qualify?

■ You must have a continued source of income for 2 years or more whether it's from your employer, social security, disability, child support or other sources.

 What if I have bad credit?

■ Don't despair because there are credit agencies out there that specialize in getting your scores where they need to be within 30-60 days so you can buy your future home. Ask your realtor or loan officer for a recommendation.

 How much can I afford?

■ This requires more of a pre-approval process in which you work with your loan officer and realtor to see the best scenario for you after some basic factors such as credit and income are reviewed.