Real Estate Blog

You may want to purchase Jacksonville property but you have doubts about your qualifications.  You may think you don’t earn enough money, or your credit score is too low to qualify for a loan. Possibly you have experienced a foreclosure and even a bankruptcy in the recent past.  In your mind you have about as much chance of owning a home as you do of owning a private island in the South Pacific.

But you could be mistaken.  An FHA guarantee allows more potential home owners to be approved for a mortgage with less stringent requirements.  The government wants you to own property, and it is willing to back up the banks who lend money so that the economy continues to thrive. 

Since qualifying for a FHA loan is more flexible than a traditional loan, your income requirements are less stringent.  You will need to show that you can comfortably afford Jacksonville property with about 30% of your gross monthly income on your mortgage payment.  Your debt to income ratio must be adjusted so you can reach this mark.  That may mean paying down some bills before you may qualify.

Your Credit Report

Your credit history will indicate to the lender your willingness and discipline in repaying loans and other debts.  FHA guidelines will allow reasonable minor credit issues.  Your credit payment history will be reviewed over the last two years.  With FHA standards, lenders will want to see no more than two 30-day late payments in the last two years.

Have you declared bankruptcy in the past?  Think you’re automatically disqualified?  Don’t count yourself out just yet.  Bankruptcy is allowed under FHA standards, but rules do apply.  Declaration of bankruptcy must be at least two years old.  In addition, you must show that since bankruptcy you have been diligent with your credit and debt payments.

Acquiring a loan with the help of a FHA guarantee is easier than most people think.  Although perfect credit history, stellar income and a huge savings account certainly help, these are not necessary for the average individual to qualify for a mortgage with FHA backing.    

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