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Have you always dreamt of buying the perfect house in the safest neighborhood since your childhood? Purchasing a house transports a person into an exciting chapter, but it is a big investment. The whole process can be overwhelming because it will be one of the largest investments in life. For this reason, you need a flexible home loan to fulfill your cherished dream. Homeowners have been showering love for FHA loans for less-stringent qualifications. Also, the low down payments and affordable interest rates are other benefits to buy a house with FHA loans.
Buying a house with 580 credit score in Houston is easy, uncomplicated, and trouble-free. FHA loans are the best alternative for conventional loans. For the FHA loans, you can carry at least 580 credit and put down a small percentage of the loan value. The lowest credit requirement is a 3.5% down payment, and you need to have a 580 credit score for it. The lenders usually have relaxed guidelines to encourage people to invest in the housing market. Let’s have a look at other important things followed by the FHA buyers.
Buying a Multi-Home Property
Many first-time buyers develop a misconception that FHA loans are only for single-family residences. However, this is far from the truth. If you are looking at a multi-unit property, you can buy a property with four-living units under FHA guidelines. You can even rent the unused units to earn a few bucks extra. You can get the same benefit under the Home Possible loan guidelines. A borrower can buy a home with four-living units, but he/she needs to meet particular requirements. However, the FHA loans have lenient credit score requirements than the Home Possible loans.
FHA Loans are Easy to Qualify
For the first-timers, purchasing a home is financially stressful. If you are young and yet to make large savings, the FHA loans seem to be a feasible option. The mortgage eases the buying process because the loan is already insured by the Federal Housing Administration. If you are a resident from a disadvantaged neighborhood, you can obtain a mortgage under no pressure. Or, people with less-than-perfect scores can have an easier time to get eventually approved. In fact, the process is much easier than applying for conventional home loans.
Know about Basic Requirements
The FHA sets the basic requirements for the mortgage. So, a borrower must have a valid SSN and be a lawful resident of our country. You need to work with the same employer for the last two years. If you are old enough to invest in the housing market, you can buy the mortgage. Also, the house bought with FHA loans must be used for a primary residence.
Do not lose your hope if your credit score is lower than 500. Then FHA loans are available with 10% down payments. Moreover, you can get down payment as a gift from the approved family members or friends. If it is not an option, you can also apply for down payment assistance. So, find a professional lender before diving into the process.