Our Blog

In part one of this two-part blog series, we went over some basics on FHA loans. One of the most common loan programs utilized today, especially by first-time homebuyers, FHA loans offer low credit requirements and often the ability to pay a much smaller down payment as you purchase a home. 

At Primary Residential Mortgage, we're happy to provide a wide range of mortgage loan programs, including FHA loans, to our varying clients in Tulsa and nearby areas. While part one of our series went over the basics on FHA loans and how to go about obtaining one, today's part two will dig into the requirements typically involved here, plus some additional elements to consider as you go down this road.

Typical FHA Loan Requirements

Generally speaking, those applying for an FHA loan will need to meet some basic requirements:

• Simple qualifications: Applicants must be residents of the USA, must be of legal age, and must have a valid social security number that can be used on the application.
• Bank statements: For most FHA loans, you'll need to provide two months' worth of bank statements. This helps the lender see how much money is coming in and going out, as well as giving them an idea of your current financial situation.
• Credit score: A credit score of at least 500, or sometimes 580, is typically required in order to qualify.
• Proof of income and payment history: Finally, you'll likely need to provide proof of employment and income, as well as your payment history on debts and other financial obligations.

There may be some additional information you have to provide depending on your situation, as well. For instance, if you're self-employed, you will have to provide a business balance sheet that outlines your assets and liabilities.

Keep in mind that while these are some common FHA loan requirements, it's important to talk with a mortgage specialist about your particular qualifications and what you'll need to provide before moving forward.

Other Aspects of an FHA Loan to Consider

There are also a few other aspects of an FHA loan to consider if you're applying for one:

• PMI (private mortgage insurance): A general requirement with FHA loans is that you pay PMI, which is a type of insurance, for the length of the loan. You'll be charged a percentage of the loan amount upfront at closing and then have to make monthly payments along with your other mortgage-related expenses.
• Property type: FHA loans can be used for both single-family and multi-family homes, but cannot be used for investment properties.
• Loan limits: Loan limits will vary significantly within FHA depending on where you live, so it's important to familiarize yourself with these before beginning the loan process.

Now that you know a little more about FHA loans and what they entail, you can start thinking about whether or not this is the right type of mortgage for your needs. If you have any questions or would like to learn more, don't hesitate to reach out to our team!

For more on this, or to learn about any of our mortgage rates or quality home loan services for Tulsa clients, speak to the team at Primary Residential Mortgage today.