More Home, Less Money Down
February 07, 2019
A new home in Sienna Plantation is more easily within reach due to new mortgage loan regulatory policies that make it easier to get a home loan.
How? With an FHA loan. An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. These loans require lower minimum credit scores and down payments than many conventional loans.
This year, FHA loan limits increased to $331,200 for Fort Bend County. That means you will have a higher level of financing to work with, potentially allowing you to purchase a more expensive home with less money down.
For example: Homes in Sienna Plantation are priced from the $250,000s. If your home costs $250,000, your down payment could be as low as $8,750! Also, your interest rate would be fixed, which means you’ll never have to worry about your mortgage payments going up.
Here’s how it works:
Many conventional loans could require a minimum credit score of 620 and up to 20 percent of the loan as a down payment. You can qualify for an FHA loan with a credit score as low as 500. If your credit score is 580 or higher, you will only need 3.5 percent of the loan as a down payment. If your credit score is between 500 and 579 you would need to put 10 percent down. All FHA loans require mortgage insurance, which cannot be canceled.
That’s not all that’s changed. With the new regulations, it’s easier than ever to get approved for your loan. The new guidelines allow more flexibility regarding employment and income verification and documentation that will help you qualify even if you are self-employed or rely on alternative methods for proving income.
It’s important to remember that not all borrowers qualify for every mortgage program and product. It’s important to seek out the aid of a mortgage broker who can help determine which loans you qualify for and which best meet your needs.