The insurance on FHA loans is provided by the government, but not the loans themselves. Though little or no down payment is necessary, fair credit and sufficient income to repay the loan are requirements. While there is no maximum to the amount of income one may have in order to qualify for a FHA loan, it is important that your monthly housing payments (insurance, principal, interest, etc.) not exceed 29% of your monthly income and also that the loan not exceed the maximum allowed for your particular county. For example, in Hertford, North Carolina, the maximum for a one-family home unit is $160,176.00. However, for New York, New York the maximum is $290,319.00 for a one-family home unit.
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FHA insured loans are also available to teachers and officers as a part of a HUDs efforts to revitalize low to moderate income neighborhoods. Full-time state certified teachers, whether employed by public school or private, can purchase a home in their district using a FHA insured loan as long as they are in good standing with their employer. Likewise, full-time police officers can purchase a home with a fifty percent discount using a FHA insured loan and a $100.00 down payment.
Federal Housing Administration Loans are loans that are insured by the Department of Housing and Urban Development (HUD), but are provided by independent lenders, giving borrowers the opportunity to obtain loans with low interest rates and significantly reduced down payments. Fill out our short form to contact up to four FHA loans lenders today.
These federally insured loans are convenient for first time buyers, those with moderate incomes, and senior citizens. New limits set by the FHA on January 1, 2003 aid senior citizens who qualify for reverse mortgages, which allow eligible homeowners over the age of 62 to borrow against their homes without giving up ownership. This reverse mortgage is not paid by the owner, but is settled when the house is sold or the owner is deceased.