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FHA Loan Requirements: What Home Buyers Need to Qualify

Realtor.com

designer491/iStock FHA loans, which are insured by the Federal Housing Administration, help home buyers secure financing to buy a home despite their low income, lack of savings, or poor credit scores—the kind of things that often prevent people from getting a conventional loan. A maximum debt-to-income ratio of 43%.

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Should I pay off student loans before buying my first home?

Housing Wire

Gone are the days when you had to put 20% down to get approved for a loan to purchase a home. For example, a conventional loan lets you put as little as 3% down. An FHA loan requires as little as 3.5% With these rates, it’s a bit easier to save a down payment , while still paying down debt.

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What to Know About FHA Loans

Realty Biz

If qualifying for a conventional loan is difficult, and you aren't eligible for VA or USDA loans, an FHA loan could be the answer. FHA loans allow you to pay 3.5% But there are also downsides to FHA-insured loans. So is this type of loan right for you? What are FHA Loans?

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FHA borrowers are getting hammered by rising rates

Housing Wire

The spectacular and historic spike in interest rates will hurt most homebuyers, but one group is especially vulnerable: FHA borrowers. Over 80% percent of FHA purchasers are first-time homebuyers, and borrowers of color obtained over 40% of FHA loans last year, according to HUD.

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Think these credit problems are stopping you from buying a house? Think again

Housing Wire

Perfect credit would certainly make getting a loan easier (and cheaper), but it’s not a requirement by any means. FHA loans require just a 500 credit score, as long as you can make a 10% down payment, while VA loans have no credit score requirement whatsoever.

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7 Things Sellers Need to Know About FHA Loans When Fielding Offers

HomeLight

You’ve just received the first offer on your home — and it’s backed by an FHA loan. So what do you need to know about FHA loans as a seller? Today, FHA loans represent a fair share of the mortgage market; in 2018, the FHA insured 12.1% FHA loans help make homeownership more accessible.

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Builders rediscover a tool from the 1980s that keeps new home prices from falling

Housing Wire

In this case, the total debt-to-income ratio (DTI) would be 51% and would exceed the Fannie Mae or Freddie Mac DTI limit of 50%. For this example, we are combining the monthly housing expense and other monthly debt obligations (assumed to be 25% of the borrower’s monthly income) to compute a total DTI.