I got Josh Wright with ERA Mortgage to answer some questions about an FHA Loan. An FHA Loan is a government insured loan. It is one of the more popular loans for our area. One of the reason it is so popular is because it only requires a 3.5% down payment. The down payment can come completely from the buyer or they can receive it as a gift. Unlike Conventional Loans, an FHA Loan has a 600 credit score threshold. 2 years work history is a necessity. Any lender is going to want to see 2 year’s W’2s, a recent pay stub, and 60 days worth of bank statements. If the buyer is receiving a gift, a statement after the gift money has been deposited will need to be provided.Once we go under contract on a house, the lender will need approximately 45 days before we can close.
These are general specifics for an FHA Loan, there is a possibility that other documentation or information will need to be provided. If we did not answer all of your questions about an FHA Loan, please leave a comment below!