If you have had trouble getting pre-approved for a home loan from traditional banks, it may be worthwhile to apply for an FHA (Federal Housing Administration) loan. The eligibility requirements are lower, and FHA lenders in Ponte Vedra Beach are more open to making room to help applicants meet the restrictions. Before you apply, it can help to learn more about how this type of loan works.
Know Your Credit Score
It is important that you go over your credit score before proceeding to make an application for an FHA loan. If you notice any discrepancies, report them right away. Getting errors fixed will give your score a little boost. This is important because a lower credit score will require putting more money down on your home.
Save for a Down Payment
You’ll still qualify if your score is between 500 and 579, but increasing it up over 580 can save you on upfront costs. A score of 579 or lower will require a 10% down payment. While that’s still lower than the traditional 20% down payment, you can qualify for a lower payment if your score is better. A score of 580 or higher will qualify you for a 3.5% down payment.
Gather Your Pay Stubs
Just like any other type of home loan, you will have to provide FHA lenders in Ponte Vedra Beach with proof of steady income. They will look at your pay stubs and your bill payment history to determine if you are a good credit risk. They will also use this information to determine how much you can afford to repay each month.
The Mortgage Lady Team Fairway can help you find and buy your new home when you contact them via their website at https://themortgageladyteamfairway.com.