Connecticut FHA Mortgage Loan Programs
What are the advantages of a FHA loan?
- FHA loans can be used to refinance or purchase a new home.
- It’s the easiest type of mortgage loan to qualify for.
- Low minimum down payment of just 3.5% on the house.
- Great for people with less than perfect credit.
- The Federal Housing Administration insures your mortgage – making obtaining one easier.
- FHA loans are “assumable” – meaning someone could buy your home from you by “assuming” the loan you have.
What do you need to qualify for a FHA loan?
- Steady work employment or worked with the same employer for the past two years.
- Lawful residency in the U.S., valid social security number and be of legal age to sign a mortgage in Connecticut.
- Minimum down payment of 3.5% on the house. This money can be gifted by a family member.
- A property appraisal from an FHA-approved appraiser.
- Mortgage payment must be less than needs to be less than 31% of your gross monthly income (includes principal, interest, property taxes and property insurance).
- Monthly debt cannot be more than 43% of your monthly income.
- Minimum credit score of 620.
- Two years out of Chapter 7 bankruptcy, with good established credit.
- Three years out of Chapter 7 foreclosure, with good established credit.
- One year completed of Chapter 7 payment history.