Prodigy Lending: FHA Home Loans In Fort Worth, Texas
The Federal Housing Administration (FHA) is a type of loan which provides people with mortgage insurance on loans that were made by FHA approved lenders. A single or multi-family home in the United States of America is able to get insurance on the mortgage through an FHA Home Loan. Through Prodigy Lending one is able to get many advantages by choosing the FHA loan and some of these benefits include:
1. Easy to qualify for
FHA loans are easier to qualify for since they have mortgage programs that have better requirements than the other loan types. This will be advantageous to any borrower since they qualify with low credit scores and poor credit history and they are able to pay back from the attractive low-interest rates that have been set. It also has a higher debt to income ratio which makes it easy for borrowers to qualify.
2. Competitive interest rates
FHA loans have attractive low-interest rates which will help homeowners afford to pay their monthly housing payments. This is a benefit to any homeowner since they are able to save a lot of money which can be used to pay for household utilities and for other activities or emergencies and so gain affordable housing.
3. Determining the credit history
When a lender is assessing your credit history any form of payment from a student loan, utility bills or rent can be considered for one to be termed eligible for an FHA loan. One can easily qualify for this loan since it does not require your credit card activity to be assessed. Your application and approval process will take a shorter time and it will be easy for a borrower to acquire.
Bankruptcy does not affect your application and the lender will not reject you if you have established a good credit score with proof of 12-month payment history. After doing so your application is easily approved as you have satisfied every FHA loan requirement.
However, some factors can affect your eligibility for an FHA loan and they are:
- No credit history
A lender has to assess and review your credit history before approving you for an FHA loan. If you have no established credit history then your mortgage lender will have to obtain developed credit history from another way or a merged credit report. Your application will be rejected if there is no means of obtaining your credit history.
- Late payments
You should ensure that you have solid proof that you have been making all your payments on time for the past year for every financial obligation before you apply for an FHA loan. This guarantees you a better chance of being approved for the loan since it shows that you will be able to make all your monthly mortgage payments and on time.
Please contact us for more information!