How to Qualify for an FHA Loan
An FHA loan is a government backed loan the allows a client to get into a property with as little as 3 percent money down. Find out what factors affect FHA loan qualification, including income and credit history, with help from a financial specialist in this free video on home loans and money management.
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With the great prices on homes and the housing market today, I get asked by my customers constantly, what's the best way to get into a property. My name is Matthew McKillen, I'm with Innovative Financial Group and people have asked me, how do I qualify for an FHA loan. First off, an FHA loan is a government backed loan that's been very popular in the last couple of years because it still allows a client to get into a property with as little as only 3% down. Generally when they go to qualify you for an FHA loan, they look at a couple of different factors. One is they do take a look at your credit file, they want to see how you've paid your other debts in the past. They can also use non-traditional credit which means everything from paying on insurance to rental history, things that don't actually report to the bureau to qualify you. The second thing they like to look at is your ability to repay the loan. They're going to take a look at your income, all sources from within the household and sometimes they'll even allow cosigners or other family members to help qualify you financially for the mortgage. So basically when you're qualifying for an FHA loan, you need to have the 3% down payment, they like to see a as agreed credit file on the debts you paid on in the past and thirdly, they like to take a look that you can afford the loan you're taking by proving your ability to repay. Thanks again, my name is Matt McKillen, I'm with Innovative Financial Group.