FHA Home Loans in Shreveport, LA
FHA home loans in Shreveport are the best way to get financial assistance to buy a house. This comes as an amazing opportunity for every average American willing to buy a house in the USA. The FHA (Federal Housing Administration) introduced this loan facility with a low down payment option of just 3.5% and an exceptionally low credit score of just 500 which makes it quite popular in comparison to the other conventional loans.
Shreveport, LA – FHA Loan Eligibility Requirements
Given below is a compiled list of some of the basic requirements to avail an FHA loan:
- Credit Score– Borrowers need to hold a minimum credit score of 580 and above to be able to qualify for 3.5% down payment and 500-579 to qualify for 10% down payment under the FHA loan facility.
- Debt-to-Income– Borrowers need to manage a debt-to-income ratio not higher than 43% under the FHA loan scheme. However, higher debt levels are allowed under certain “compensating factors” that includes- good amount of money in the savings account, longer and well-sustained job history, or a great credit score.
- Financial Statements– Borrowers need to produce their 2 most recent bank statements, pay stubs, and tax returns to get validation under the FHA loan scheme.
- Property Requirements– Borrowers can avail FHA loans only for homes that are in ready to move in condition. In addition to this, the appraisal of the property must specify conditions approving the underwriter that the property is in move in condition. Also, the borrower should ensure that the home they wish to buy does not contain any hazardous materials or equipment leading to hazardous situations. If this home needs repairs or revamp, it must qualify for the FHA 203k rehab loan, too.
- Owner Occupied– Borrowers willing to avail the loan facility must occupy the associated home under the loan, themselves i.e., the property covered under the loan must be a primary residence. FHA loans do not apply on financing any investment property, second home, or vacation home.
- FHA Loan Limits – Borrowers need to check the FHA maximum loan limits that can be borrowed using an FHA loan in their county, prior to applying for the loan. You can check for the same under the 2023 FHA loan limits for Shreveport, LA (Caddo Parish) on this page.
- Mortgage Insurance– Borrowers need to apply for mortgage insurance as well, regardless of the type of FHA loans, and the lender. Mainly, two types of mortgage insurances- UPMIP (Upfront Mortgage Insurance Premium) and the regular MIP (Mortgage Insurance Premium) covers the FHA loans. The FHA MIP acts like the PMI (Private Mortgage Insurance) work mechanism on a conventional loan acts. Use our FHA loan calculator to check the estimated mortgage insurance costs that will be applied (and also estimate your monthly mortgage payment).
Even though, these are just a few of the basic requirements for availing an FHA loan but, different lenders may have additional requirements.
Do you wish to know if you qualify for an FHA loan or not? We can help you match your needs and get the best mortgage lenders who offer the best FHA loans in Shreveport, LA.
Click here to get matched with an FHA lender
How to Get an FHA Loan in Shreveport, LA
To avail the FHA loan facility as the first time home buyer, you need to first find a reliable FHA approved lender and match the requirements as per the list. Most of the mortgage lenders are FHA approved who can offer the best FHA loan deals for you. This will include- majority of the banks, non-bank lenders, credit unions, and mortgage brokers.
If you wish to get help finding an FHA approved lender, click here to request to get matched with a lender. Receiving your request, our expert team will compare your needs and find the best matched mortgage lender that offers FHA loans in Shreveport, LA. These lenders are professionally qualified to handle, help and offer the answers to all your questions concerning the FHA loans.
Frequently Asked Questions About FHA loans
Still confused or puzzled, here are some of the most frequently asked questions with well explained answers about the FHA loans:
Is down payment assistance available for FHA loans?
Most down payment assistance programs are eligible to use with an FHA loan. The types of down payment assistance programs that are available depend on the location. A mortgage lender can help you determine if you are eligible for any down payment assistance programs. To have a mortgage lender help you check your eligibility for down payment assistance, request to be contacted by a lender.
Are there any mortgage programs that offer lower down payment options?
Yes! there are two different mortgage programs offering 100% financing options which means no down payment is required to avail a home loan. These mortgage programs include- VA loans and USDA loans. VA loans are exclusively focused on veterans, while USDA loans can be availed for financing rural properties (as these loan facilities are not available for financing larger town or city homes).
What are “compensating factors” for an FHA loan
The compensating factors under the FHA loans refers to the certain degree of leniency offered by the Federal system while loan approval. As per the compensatory factors even if a borrower falls short in meeting some specifications, they can qualify for the loan in lieu of other stronger points. Specific compensating factors include- higher credit score, longer and well-sustained employment history, higher savings, or assets. Any one or more of these factors will play a vital role to help a borrower get an approval, even if they do not comply on other factors.
How do I get pre-approved for an FHA loan?
If a borrower fulfils the required qualifications to qualify for an FHA loan, availing a pre-approved loan is easy. However, to make the process easier and even more accurate, an FHA mortgage lender can be approached. To request a call back from our FHA lender, please request to get matched with a lender.
Are co-signers allowed for FHA loans?
Yes, co-signers and co-borrowers are permitted for FHA loans. Under this, one can hold a joint applicant for the loan with someone who is not the applicant’s spouse or relative.
What are the pros and cons of FHA loans?
Pros: The pros of FHA loans include- low down payment option, easy to qualify terms and process in comparison to conventional loans, and not to forget the availability of assumable and refinancing options.
Cons: The cons of FHA loans include- costly mortgage insurance premiums, unavailability for investment properties, and very low loan limits in particular areas (FHA loan limits are often lower than conforming loan limits).
What are the options to refinance an FHA loan?
FHA loans mainly offers two different options for refinancing. Under this, the first one is the FHA streamline refinance, that helps in refinancing a mortgage efficiently for reducing the associated interest rate and monthly payment with a loan facility. Under this program, there is no need for a new appraisal, credit check, or income documentation. Meanwhile, the second option is of FHA cash out refinance, that helps in taking equity out of your property.
Still have any questions about FHA loans?
Our FHA loan representative can help you get the answer of all your queries on FHA loans. To request a call back from our FHA lender, request a free consultation. We will surely help you match your needs and get the best mortgage lender offering the most suitable FHA loans in Shreveport, LA