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Those who are considering the idea of buying their first home are usually a great match for FHA home loans. There are some requirements there are involved with getting FHA home loans and for those who are new at home buying it's important to know what these are before seeking out preapproval. Is Your Credit Important When Getting FHA Home Loans? When being considered for preapproval, lenders of FHA home loans will take your credit into account. There are usually two types of credit that FHA home loans require. Even if you don't have any credit you may still be considered for an FHA home loan. If you have been through a bankruptcy or a foreclosure you may still be approved for an FHA loan. However, you'll have to provide proof of on-time payments over a 12 month consecutive period. You may also need to obtain approval from the bankruptcy trustee in writing alongside your preapproval paperwork. As long as you filed under Chapter seven, have steady employment and have established a positive crediting rating since, you should have a good chance at getting preapproval for FHA home loans. What Down Payment is Required with FHA Home Loans? Typically the down payment for an FHA home loan is very low. Those who have great credit can expect to put down the minimum of 3.5 percent of the home's value. Another advantage to the down payment for FHA home loans is that it doesn't necessarily have to come from your own savings or checking account. Those who cannot afford the 3.5 percent can pay for the down payment through gifts from family members, employers or even a nonprofit organization that will give the down payment as a gift. What is the Downside of FHA Home Loans? There are some disadvantages to FHA home loans that borrowers should be aware of before seeking preapproval. The amount you can take out with an FHA home loan has limits. The limits are set geographically and also depend on the type of property you are purchasing. It's important to ask your mortgage broker or lender what the ceiling is for your FHA loan before you fill out the paperwork. If the amount is lower than what you expected you may want to consider a more conventional loan with a higher lending ceiling. However, with conventional loans you run the risk of having a higher rate and also a larger down payment. For more detail information, visit - www.coolbizdir.com
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