Things You'll Need:
- Phone Book
- Online Mortgage/finance Services
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Step 1
Contact an FHA-approved lender. Look in the yellow pages under Real Estate Loans/Mortgages, or search the Internet.
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Step 2
Shop around. Interest rates for FHA loans are set by the individual lenders, so rates vary.
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Step 3
Learn the specific income and credit qualifications for your area.
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Step 4
Know that the maximum loan amount is $151,725, but may be lower depending on where you live.
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Step 5
Complete a loan application.
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Step 6
Provide the documentation required by the lender.
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Step 7
Be prepared to pay a down payment of 3 to 5 percent, depending on where you live. (Closing costs are 2 to 3 percent of the purchase price, and most of that can be financed.)
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Step 8
Pay mortgage insurance. Because you may be putting down as little as 3 to 5 percent, you are required to pay mortgage insurance to cover the risk incurred by the lender. An up-front mortgage insurance premium is required and can be financed. The monthly mortgage insurance payments must be paid each month with the mortgage payment.
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Step 9
Complete the loan transaction.
