Are you looking for an FHA loan and want to estimate your payments? Using a Loan Calculator can help you determine your payment amount quickly and easily. Here are some quick tips to help you along the way.
Check Your Eligibility
Before you get too deep into researching your loan, you’ll want to make sure that you’re eligible. They generally require the following qualifications:
- Minimum 580 credit score
- 3.5% down payment
- Consistent employment history
- The property meets FHA Standards
Even if you don’t meet all of these qualifications, you may still be eligible for your loan. Check with your lender to receive a full qualification check and get pre-approval.
What Size Loan Will You Get?
The loan amount you qualify for varies depending on your income, credit score, down payment, and debt. A higher credit score and down payment will help you get a bigger loan.
Are There Limits to FHA Loan Amounts?
There is a cap to the amount of money the FHA will lend to a home buyer. Current limits for a single-family home are:
- $331,760 in low-cost areas
- $765,600 in high-cost areas
- $1,148,400 in Alaska, Hawaii, Guam, and the Virgin Islands
Are They Only for First-Time Homeowners?
While FHA loans are not given only to first-time homeowners, you can only use it to buy a primary residence that you plan to live in permanently. In other words, you can’t use the loan to buy an investment property or vacation home. However, you can use your loan to purchase a multi-family home and rent out the homes you’re not living in.
What Will Your Interest Rate Be?
FHA interest rates are usually slightly below the market average. However, you will also be paying mortgage insurance equal to 0.85% of your loan amount.
Are There Any Income Limits?
Don’t worry – there aren’t any income limits to qualify for your loan. No matter what your salary is, you may be eligible. So you can rest assured that your income won’t be a factor in determining your ability to qualify for the loan.
Ready to Apply for Your Loan?
We want to help you make your homeownership dreams come true. To speak to someone in person about your loan, find a loan expert to help you iron out the details.
If you’ve done your research and you’re ready to get started buying your new house, apply for a loan with us today!
