The process of buying a multifamily property is never easy. The good thing is there are several loans available to help you with your purchase.
One of the largest insurers of mortgages worldwide is the Federal Housing Administration (FHA). To purchase a property, you would have to find approved FHA multifamily lenders like the Bonneville Multifamily Capital. Although it is relatively easy to find FHA-backed agencies, it is important to know more about the loan type and how you can apply for one.
What is FHA loan?
FHA loan was established in the 1930s as a response to the plummeting housing market. It works by encouraging lenders to be active in the market as they have one of the most stable backers in the world to help reduce their risks of loss should a borrower fail to pay.
FHA loan is one of the most popular loan types especially for first-time homebuyers because it allows 3.5% down payment for borrowers who have a credit rating of 580+. Adding to its popularity are the benefits not available for non-FHA loans. Some of these include easier qualification, competitive interest rates, and lower fees, among others.
What are the requirements in applying for FHA loan?
Like other loan types, having good credit is a must. One must be out of bankruptcy for at least two years before being able to apply for an FHA mortgage although there can be exemptions. A credit rating of 580 and above will allow you to have a down payment of 3.5% and those lower than 580 would need to shell out 10%. Your gross monthly salary, an approximate value of personal property as well as other loans should be presented. These are just some things you would need to prepare. It is important to do thorough research and know the things you need to have upon application.
What are you waiting for? Ask your lender about FHA loans and be able to have your dream property at a very reasonable mortgage rate.