How to Get a FHA Loan

Instructions

• 1

  First, you need to find an FHA-approved lender. You can take help from the yellow pages under Mortgages or Real Estate Loans. Furthermore, you can also take assistance from the internet which is often more convenient.
• 2

  It is very important for you to do the necessary research about the interest rates for the FHA loans which are being set by individual lenders and vary a lot.
• 3

  Now, select the most appropriate package in accordance with your income and credit qualification.
• 4

  It is to be noted that the maximum amount of loan is $151,725. However, the loan amount can be lower, depending upon where you reside.
• 5

  Go through the loan application form thoroughly and complete it.
• 6

  Make sure that you have all the necessary documents which are required by the lender to issue loan.
• 7

  Prepare yourself to give 3-5% down payment, which also depends upon where you live. It is to be kept in mind that the closing costs are around 2-3% of the purchase price, most of which can be financed.
• 8

  Afterwards, you will need to pay the mortgage insurance. You have to pay the amount of mortgage insurance so as to cover the risk which will be acquired by the lender because you may only be giving 3-5% of the total amount. Besides, a mortgage insurance premium will be required up-front, but it can be financed. You will have to pay the monthly instalment of mortgage insurance along with the mortgage payment.
• 9

  You have to keep all the above mentioned points in mind, before completing the transaction.