Nassau & Suffolk County FHA Home Loans
Long Island FHA Home Loans
A general FHA loan is a type of mortgage, which the Federal Housing Administration insures, and can only be issued by a financier ratified by FHA. Principally, this type of loan suits individuals with moderate and low incomes. Borrowers are supposed to have a lower credit score and a lesser minimum down reimbursement. Read below for the content of the FHA loan. Please contact a Long Island FHA Home Loan expert for more detailed information.
Documentation Obligations of
When requesting an FHA loan, you need the following documentation:
- Social security number evidence
- A driver’s license, valid national ID provided by the federal government, or passport
- A dated and signed letter detailing the amount and source of gift funds if any with an explicit indication that you do not intend to recompense the amount.
- Initial pay stubs, binding tax returns, or W-2 forms of two years.
FHA Credit Income
An insured FHA mortgage does not have a maximum or minimum salary requirement to prevent or qualify you to secure one. However, you are supposed to fulfill the following conditions:
- You should not be having a negligent federal judgment or debts that are either debit or tax-related with previous mortgages insured by FHA.
- You should have a minimum of two reputable credit accounts, such as a car loan or credit card.
- A down payment account for cash aids. Cash gifts can entail money from family members, friends, your employer, government agency, union, or a charity. Cash gift accounts require a dated, signed, and written verification by the donor.
Insurance Requirements for
Borrowers of FHA loans are required to pay the following premiums for mortgage insurance:
- Annual Mortgage Insurance Premium- Borrowers should pay a minimum of 0.45% and a maximum of 1.05% dependent on the duration of the loan, which is normally, 15 and 30 years for each, respectively. Other reliant factors include the original ratio of loan-to-value and the credit amount.
- Upfront Mortgage Insurance Premium- The premium for this insurance is 1.75% of the amount of the loan, and it is usually required to be paid upon receiving the loan. Besides, it can be rolled into the amount of the financed loan.
The flexible financing principles of FHA are designed in a way that borrowers with low income, without pristine credit, and those lacking cash savings can benefit. If you intend to take an FHA loan, here is a guide to help you. For more information we would suggest contacting a Nassau or Suffolk County FHA Home Loans professional.