Whats the best and Easiest way to qualify for, and get an FHA loan??? In NM?

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  • 1 decade ago
    Best Answer

    Prepare yourself before going to your lender by getting the required items together. Thirty days of pay stubbs, two years of W-2s, two months of all your checking, savings, and retirment accounts. Have your sales contract, if buying and if refinancing have your deed, and homewoners insurance, as well as the mortgage statement from you current lender. You will also need to furnish a copy of your drivers license and/or ID, such as a passport, if you don't drive. You will have to have pretty good credit and an explanation for any credit problems or isssues. You will sign a bunch of disclosures, that are required by the FHA, and others that may be required by the State of NM. The lender will order an appraisal, about $300.00 to $350.00 and also a credit report, costs about $15.00 to $25.00. They will underwrite your credit, the appraisal, and review your financial position as it relates to the new loan, (debt), and approve you if everything is within their guidlines. Generally, you cannot pay more than about 29 to 31 percent for the total house payment, which includes principle and interest, property taxes and homeowners insurance, and the FHA's mortgage insurance premium, which they charge, to insure the actual lender, in case of default and foreclosure. You also have to have no more than 41 to 42, maybe 43 percent of total long term debt including the new housing pament. In some cases the underwriter will allow you to exceed these percentages, but you have to have compensating factors. Such as a large savings, long term employment with the same company, smaller size family, income that is not taxable, such as social security and another family member living in the house, but not on the loan, that has income. The entire process can take up to three or four weeks, and in some cases a little less and in other cases a little longer. FHA doesn't really go by credit scores as do most conventional loans, but you can't just get an FHA loan, without proving that you can afford to repay the debt or have just abused credit. They also look at your current housing expense as it relates to your new housing expense, if it is less or near the same, that would be great; but, if it is higher then they look at your savings pattern. Have you been saving at least the amount of the higher difference. Example, you have been paying $800. per month in rent and your new housing expense will be $1,000. per month; then you should show that you have been saving around $200.00 per month over the past six or more months. This is just a brief review, as if you have had some issues in your past, frequent job changes, no savings pattern, poor credit, or worse, then you may have to wait until you can overcome these issues. You will at least have to prove that they are in the past, and that you have over the past six or so months, demonstrated that you are now on solid footing. Any approved FHA broker, lender or bank can assist you, but shop around to find the best interest rate and least expensive closing cost. Even though FHA restricts certain charges lenders vary considerably in their interest rates, as FHA doesn't regulate the interest rate. FHA's MIP, is usually more expensive than on a conventional loan, but the required downpayment is generally less or can via a gift.

  • Anonymous
    1 decade ago

    Check the website and see if you meet the requirements. If you do, then apply for the loan.

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