FHA Home Loans - How Will Our Debt Affect Us?
For one thing, your debt-to-income ratio is less than favorable. This may hurt your chances for qualifying for a mortgage loan of any type, including the FHA home loan. If your total debt is nearly equal to a full year's worth of income, it's going to raise some red flags with most mortgage lenders.
Keep in mind that when you apply for an FHA home loan, you still have to go through a private lender. You may already know this, but I wanted to clarify it for other readers. Many people think that the FHA loan program is a way to bypass regular mortgage lenders, but it's not. Even though you're applying for an FHA home mortgage, you still have to submit the application through a lending company. And that company will review your debt-to-income ratio, your credit score, and other factors.
Of course, the whole point of the FHA program is that the federal government insures the loans made by the private lenders. This is key to the whole process, because it means that a person who might not otherwise qualify for a mortgage could get one through the FHA home loan program.
Here's the bottom line. The only way to know if you can qualify for one of these loans is to apply for one. You've really got nothing to lose by submitting an application. They can tell you no, but at least you'll know what you need to work on (most lenders will tell you exactly why they can't approve you).
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I hope that helps you out some. Good luck.
Labels: mortgage
posted by Brandon at
12:37 PM
