Finding an FHA Loan
How to Apply for an FHA Loan
Homeownership is within reach for many who think otherwise. Meeting the demands of high down payments and high credit scores can be challenging but FHA loans are designed to accommodate the needs of first-time homebuyers and others who are not able to qualify for conventional loans.
Applying for an FHA Loan
When applying for an FHA loan you will need to provide basic personal information like your name, address, Social Security number, and driver’s license number. Your lender will also ask for financial information including:
- Bank statements
- Your last two pay stubs
- W-2’s for the previous two years
- Employer information for the previous two years
- Social Security, Pension, or disability income (if applicable)
- Investment statements
- A thorough list of debts and minimum monthly payments
- If self-employed, profit and loss statements for the previous two years
Your lender will look closely at your debt-to-income ratio, this is the percentage of your monthly income used to pay your debts. Each lender will have their own requirements, but generally your debt, including the FHA loan you ae applying for should not exceed 43% of your gross monthly income. This percentage can change depending on your credit score.
While most lenders can provide an FHA loan it is still important to find the right lender for your situation. Finding the perfect mortgage is free, easy, and only take a few minutes.