Owning a home has long been a quintessential part of the American dream. But rising housing costs and financial uncertainty have kept that goal out of reach for many low-income families’ reach. To provide opportunities for those who might not otherwise see them, the Federal Housing Administration has insured loans from approved vendors since 1934. This means that, after an accepted application, the FHA will guarantee mortgages up to certain limits, bringing lenders and new homeowners together in mutual security. It also offers down payment grants, which can partially or fully fund the necessary initial cash.
The FHA must assess every applicant as a credit risk. Interested families should be prepared for intense financial scrutiny, including their debt-to-income ratio and prior credit history. There must also be at least one source of income for the household that can support bills and payments. The two biggest black marks on a record are a previous foreclosure and Chapter 7 bankruptcy, both of which display a default in the past, which may be enough to deny requests for FHA loans.
For the best chance at casting their finances in the best light while applying for FHA loans, families in Los Angeles, Riverside and San Bernardino will benefit from the help of a practiced lawyer who can look over their application and help remove any problems before it is subject to the judgment of the FHA and private lenders. The intervention of a professional lawyer that’s also a mortgage broker from Common Sense Mortgage Group, Inc. will ensure your success.