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Step 1
First you need to select a reputable bank or mortgage company.All federal housing administration loans have the same interest rates.The FHA rates are set by the government. You must be employed for 3 years in the same line of work. You must have a minimum down payment of 3/1/2 percent of the purchase price of the house which is required by the FHA. For example a $100,000.00 purchase price would require a $3500.00 down payment.
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Step 2
There is no minimum credit score for a FHA home loan,but all outstanding leans or judgments must be satisfied. If you have any negative credit history it must be explained in writing. Most banks and mortgage companies offer pre-approval up to the maximum home loan that you qualify for. Your monthly house payment cannot exceed 29% of your monthly gross income. The total of all your monthly payments cannot exceed 36% of you monthly income.Utility bills and medical bills do not count in the calculations.
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Step 3
Purchase prices in amounts under $115.000.00 after the down payment result in a monthly house payment lower then most people pay in rent. If you are married income from both parties count towards the home loan calculation for a FHA home loan.
