IF I HAVE BANKRUPTCY IN THE PAST, CAN I STILL QUALIFY?

Bankruptcy doesn’t normally disqualify applicants from FHA loans, provided that you’ve got an established good payment habits since the bankruptcy.

 WHAT IS MORTGAGE INSURANCE? WHY DO I NEED HOMEOWNER’S INSURANCE IF I HAVE MORTGAGE INSURANCE?

Mortgage insurance is distinct from homeowner’s insurance. Mortgage insurance covers the lender against the chance the borrower will default on the loan. This is actually the support that provides lenders the confidence to approve loans to homeowners with significantly less than perfect credit qualifications.

Homeowner’s Insurance helps homeowners make do with all the financial effects if a house is damaged or another person is injured on the property. This is a blend of two different kinds of hazard insurance, protection, and liability insurance.

CAN I BUY AN INVESTMENT PROPERTY OR SECOND HOME WITH AN FHA LOAN?

No, FHA loan are for owner occupied property only. You must reside in the property for a minimum of one year, and have to move into the property within 60 days of closing a purchase. After this, you can alter how you make use of the property; yet, FHA typically Won’t cover more than one principal home mortgage for virtually any borrower.

 FHA LOAN LIMITS

The FHA limits the maximum loan amount that it will insure. The conventional loan limits set by Fannie Mae and Freddie Mac are computed and updated annually, and influence these loan limits. The type of residence, including single-family or duplex, may also change these numbers.