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Torang Nazmi's Blog

By AATRealty | Save 1000's | Broker in 75063

FHA Homebuying Tips

Maximize Your Credit Score

The higher your credit score, the lower your required down payment. Although FHA loans do not have as strict requirements as other bank loans, this does not mean that credit scores are irrelevant. According to FHA online, only homebuyers with a minimum score of 580 are eligible for the lowest 3.5 percent down payments. Buyers with credit scores below 580 are required to pay a minimum of 10 percent for a down payment. Boost your credit rating by paying bills early or on time and keeping credit card balances low.

Find Your Niche

The FHA offers specialized loan programs for a wide variety of groups, including first-time homebuyers, seniors and manufactured and mobile home owners. 203(b) Mortgage Insurance is a program for first-time homebuyers that offers the lowest down payment percentage for one- to four-unit, owner-occupied homes. Seniors who are at least 62 years old may qualify for a reverse mortgage, which allows them to convert equity into cash with no repayment until they move to a new property. FHA loans are also available to mobile and manufactured home owners who either own land or live in a mobile home community.

Remodel and Go Green

The 203(k) loan program allows homebuyers to finance the home purchase as well as any remodeling costs that may be required. You must provide detailed outlines of the work needed, as well as costs that may accrue, and submit them to an FHA 203(k) lender. Down payment requirements are 3.5 percent of home and repair costs. Once the application is approved, you will receive the purchase mortgage and cash for estimated remodeling costs, plus an extra 10 to 20 percent of the remodeling costs for any extra work that may come up. You can also invest in making your home more energy-efficient. An Energy Efficient Mortgage (EEM) can also be combined with 203(b) and 203(k) loans. These mortgage programs are provided by lenders and insured by the FHA, just like other FHA loans. They allow you to make energy improvements to the home with no additional down payment or prerequisites.

source : http://homeguides.sfgate.com/fha-homebuying-tips-2463.html

TORANG NAZMI

☎ 972-897-5718

http://www.aatrealty.com/

Agent at Hicor Realty Group

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