Can I Obtain a Government Loan?
Likely the most difficult aspect of purchasing a new home is qualifying and obtaining a mortgage loan that will allow you to go through with buying the house. If you don’t have a high credit score or are unable to make a substantial down payment, it’s possible that your loan application could be denied. If you want to apply for a loan that doesn’t have as strict requirements, you should consider an FHA government loan.
Types of Government Loans Available to You
The main type of government loan that you can obtain is an FHA loan, which is a type of loan that’s backed by the Federal Housing Administration. These loans are available to multifamily and single-family residences throughout the country. If you don’t have the means to make a large down payment, this might be the right home loan for you. Because of the low down payment requirements, this is considered to be an ideal loan for first-time homebuyers.
How to Qualify for a Government Loan
The qualification requirements for an FHA loan are extensive but also easier to meet when compared to conventional loans. If your current credit score is 580 or higher, the down payment requirements are only set to 3.5 percent. If your credit score ranges from 500-579, you will need to make a down payment of at least 10 percent of the value of the home. Your debt-to-income ratio should also be below 43 percent. Along with showing proof of employment and a steady income, you will need to purchase mortgage insurance.
Issues That Could Negatively Affect Your Eligibility
There are several things that could make it more difficult for you to qualify for this type of home loan. If you don’t yet have an established credit history, you likely won’t qualify for the loan. The same is true if you’ve filed for Chapter 7 bankruptcy in the previous two years. A past foreclosure can also make it difficult for you to obtain this loan. With this information in hand, you’ll likely want to shop for the top loan by seeking assistance from the best loan officers in Las Vegas.