Buying a home for the first time can be an exciting prospect. You relish of owning your own home is something that no one can take away from you. You also enjoy the idea of being in control of where you live. However, the idea of getting a new home loan can be daunting. You are not sure what is required of you and if you will be approved. You can better your chances of getting a loan by knowing what the best FHA lenders typically require of first time home buyers in the Atlanta, GA area. Here’s what you need to know about getting approved.
Minimal Credit Score
Most of the best FHA lenders do not require first time home buyers like you to have exceptionally high credit scores. While many home lenders require scores to be above 650, FHA lenders typically will allow your score to be as low as 580 or in some cases even lower. In fact, credit scores are not the primary deciding factor for your approval. These lenders are more concerned with your debt-to-income ratio and how much money you earn each month. If your debt-to-income ratio is at or below the allowable limits, you could still be approved for an FHA loan.
Down Payments
Many FHA lenders today do not require the standard 20 percent down on a home. Some lenders allow you to pay as little as five to 10 percent down on the house. Others will not require any kind of down payment at all. The criteria for whether or not you need a down payment will depend on several factors like your credit score, income, and amount of debt. Some homes like those that need fixing up, or are located in rural areas, can be purchased with no money down at all.
If you need to learn more about FHA loans, contact the Moreira Team in Atlanta, GA.
