A recent college graduate, who is trying to secure a home loan, or a loan in any state for that matter, needs a loan program that has flexible guidelines. An FHA loan Nevada offers that flexibility when it comes time for qualifying for the home loan. Being that the graduate recently attended school, they are not required to meet the entire two year work history requirement that a Fannie Mae or Freddie Mac conventional loan requires. An FHA loan will allow school attendance credit towards the two year work history.
Being in the workforce full time for one year coupled with the prior year being in school satisfies the two year work history guideline, which again many conventional lenders of today aren’t allowing. If the home buyer is working in the field in which they received their degree, that would help the overall chance of getting approved for a home loan, however it’s not necessarily required. Lenders and underwriters may have differing views and rules when it comes to this scenario so it’s wise to check first with your Loan Originator before you enter into a loan application to how this situation is viewed before they pull your credit report.
Benefits of FHA insured mortgage loans: These loans are particularly beneficial to the borrowers. As the loans are FHA insured, lenders find it convenient to reduce mortgage rates over these loans. FHA insured mortgage loans are offered as 30-year fixed term mortgage loans or adjustable rate mortgage (ARM) loans. In case of ARM loans, FHA generally considers 1-year constant maturity index while rescheduling the interest rates. Also, FHA insured mortgage loans have other advantages such as low down payment, low origination fees, zero prepayment penalties, mortgage insurance and providing financial assistance during closing. The usual down payment on these loans is 3 percent.
Eligibility Criteria: In conventional mortgage loans, loans are available with lower down payment but are offered at higher mortgage rates. FHA insured mortgage loans are particularly beneficial to those who are first time buyers but do not have finances to make large down payments. However, there are certain criteria that need to be fulfilled in order to be eligible for these loans. The applicant should have a good credit history and a stable income.
But, even borrowers having a poor credit history can qualify for an FHA insured mortgage loan under certain schemes. Apart from this, FHA also offers loans under acquisition or home rehabilitation projects. FHA loans Nevada can help anyone get the loan that they need.
Want to find out more about FHA Loans Nevada, then visit Karen Carter’s site on how to choose the best FHA loans Nevada for your needs.