1. Is FHA financing complicated?

Years ago, FHA financing was more complicated than conventional financing. However changes over the years have streamlined the FHA loan process and in many cases, FHA home loans are easier than conventional financing.

2. What is the minimum amount of money I need to buy a home with a FHA mortgage?

The National Housing Act requires the minimum cash investment to be 3 percent of the sales price. Even though the actual down payment may be less than 3 percent, the balance would go towards the borrower's closing costs. In the event that there are no closing costs, the down payment would be increased to 3 percent.

3. What if I don’t have enough savings for a down payment?

There are many ways to buy a home with little or no money down. You could borrow against a retirement fund, and if you're a first-time homeowner, you can withdraw the amount without negative tax consequences. You may qualify for local, state, or federal down payment assistance program.

4. What is 203K FHA loan?

This is a program that is associated with purchase of a run-down property. It allows the buyer to buy the property that is in a bad shape and make the necessary repairs to the property to rehabilitate it.

5. Who is eligible to qualify for a FHA loan?

FHA loan program is open to virtually everyone. There are a few things that are to be considered such as credit and residency that may preclude someone from obtaining a FHA home loan.

6. What are the requirements to get a pre-qualify for an FHA home loan?

There are many factors that are to be considered before issuing a pre-qualification, such as job stability and reliability. Reliability would be holding a steady job for at least 2 years with the same employer. Any foreclosure or bankruptcy should be at least 3 years old.

7. What is the FHA loan limit?

FHA loan limit varies depending upon the cost of the area. FHA loan limits usually change based on the average home prices in a particular area. But the loan limit varies even depending upon the number of units. Check with your lender to conform the current FHA loan limit.