FHA is a viable option for home-buyers. FHA's goal is to help American's achieve the "American Dream of Homeownership"
Congress recently passed legislation, as part of the Economic Stimulus Package, to temporarily raise the FHA loan limits. The loan limit for the metro area of Richmond Virginia was increased to $528,750. FHA also offers some of the best interest rates available to buyers.
FHA does not require perfect credit. If your credit score is less than 700, then FHA may be a viable option for you. While FHA does not condone or participate in risky loans. they do consider making mortgage loans to those without A1 credit.
If you have a good repayment history, although not perfect, an underwriter will look at the overall credit history to make a determination of the potential borrower's credit worthiness. If you have experienced a specific period of financial difficulty due to outside circumstances, you may still qualify for an FHA loan.
Borrowers who have experienced a bankruptcy may still be able to qualify for an FHA if the bankruptcy has been discharged more than two years (Chapter 7) or if payments (Chapter 13) are being made in a satisfactory and timely manner.
All federal liens and judgments must be paid in full before closing escrow. Other types of judgments and collection accounts may not require repayment; this would be determined by an underwriter.
FHA loans are aimed at the first-time buyer. However, if you have not owned a home for three-years prior to your loan application, you may still qualify for an FHA loan. Did you previously own a home but lost it through the foreclosure process? Even prospective borrowers who have had the unfortunate experience of a foreclosure may qualify for a FHA loan.
If you do not currently have a credit history, FHA will allow substitutions for credit. An example of this would be a letter of credit from a landlord or utility statements.
To know your buying power or your ability to qualify for an FHA loan takes the expertise of a good lender. Do not make an assumption without speaking to a lender first. You may find that owning a home in Richmond Virginia is not beyond your means.
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