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Best Mortgage Companies for an FHA Loan

Discussion in 'FHA Loans, Requirements & Rates' started by Moe, Feb 16, 2011.

  1. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    For borrowers looking to secure a mortgage, it is not always easy gaining the approval of a lending institution. Nowadays, more stern credit requirements prevent several shoppers from securing a mortgage. This realization has left many without a home. In addition, current homeowners have had to seek a refinancing option since the value of their property is now less than the remaining loan balance on the mortgage. Fortunately, the Federal Housing Administration (FHA) has stepped in to help first-time borrowers and borrowers with a poor credit history in obtaining a mortgage.

    Several of today’s major banks offer FHA loans. If I personally needed one of these mortgages, I would shop the top 3 or 4 lenders. There is simply no reason to deal with anyone else.

    For instance, Chase Mortgage provides details on its website about the specifications and terms of an FHA loan vs. a conventional loan. It is crucial that one consider these differences when looking to obtain a mortgage. The Chase website lists the ease of approval in obtaining an FHA loan in addition to the benefits to the borrower. It is also mentioned that interest rates may be more favorable under this option.

    More information at https://www.chase.com/chf/mortgage/fha_about.

    Bank of America is another one of the organizations that offers FHA approved loans. Many note that Bank of America has a more simplified navigation system when compared to Chase. Ultimately, the websites that disclose the most information tend to attract more customers, as consumers in today’s market generally have limited knowledge of the real estate business. The Bank of America website gets straight to the point, stating that the purpose of the Home Affordable Modification Program that was established by the Federal Housing Administration is to lower the overall monthly payments for a borrower.

    More information at: FHA Home Affordable Modification.

    One additional institution is Wells Fargo Home Mortgage. The website makes it easy for users to find out whether or not they qualify for FHA loans and how the application process works. Features available on the site allow a user to find out more information regarding the loans that Wells Fargo has to offer.

    Information regarding loans available through Wells Fargo can be found at https://www.wellsfargo.com/mortgage/buy/loans/descriptions/government.

    As can be seen, there are a limited number of institutions that offer these types of mortgages.
  2. fighton

    fighton LoanSafe Member

    Does anybody know what the minimum credit score qualifies for FHA? Also do you know if they would consider not a first time home buyer if my spouse house has foreclosed but I am not on the title or on any home loan and I have never purchased a home before? Thank you and god bless
  3. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Hello,

    FHA may go down to a 580 credit score with compensating factors and it has to be 3 years since the foreclosure date.
  4. Ldarshay

    Ldarshay LoanSafe Member

    I have decent credit, I'd say the 7's, but I just paid off all of my debt. (car, credit cards, and all other payments). How long should I wait to apply for a mortgage for all of my info to be updated on my credit report? All the money I'm making at this point is going straight to my pocket to get into a house, I have to take advantage of this housing situation, but want to make sure I'm getting the absolute best deal! Also, should I talk to a real estate agent and pick my home first or get approved for a loan first?

    -Lance
  5. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Hello Lance,

    While I commend you for paying off your credit, but it is not wise to close down all your trade lines because those will be needed to qualify for an FHA Loan. At the very least, you need one active tradelines open, but preferably 3 or 4. Even with one open tradeline, it will be very tough.

    The official FHA guidelines say 3 tradelines with good history.

    Many borrowers are required to have four, and if your lender is flexible enough and you have some compensating factors, they may accept my rent-payment history, utility payments, and an overdraft line of credit attached to a checking account, with proper verification from the creditors/landlord.

    It all depends if your DTI is below 50% and if you have a 640 FICO or above which you do have. So, you may have a shot with one tradeline, but not with none open.
  6. Ldarshay

    Ldarshay LoanSafe Member

    Let Me clarify alittle on that matter. I didn't close the accounts, as I am well aware that has a negative effect. But simply payed them off, and still maintaining a high credit limit. Example: $7,000.00 limit with a $150.00 balance. And as far as DTI I'm looking at maybe 1%. Next question is with good credit and a yearly salary of say 35k, what are the chances of successfully getting into a home at say $160,00?

    Thanks unc for the quick reply!

    -Lance
  7. Ledeen

    Ledeen LoanSafe Member

    I dont know what your talking about, I went to each of these links and they didnt offer any kind of tool to tell me if Id qualify....
    personally I have had to go to the HUD website and download their documents and manuals on underwriting to see if I would qualify. I found an FHA lender who was referred to me who I so far have liked working with. My only question is automated underwriting and the ratios, but I know I wont find any of that on the BIG BANK web sites.

    They also did the LEAST in the Hamp programs in fact Bank of America has basically failed to live up to their HAMP2 period, yet they take the government money and so far no one in the government is going to force them to abide by the hamp2 rules.

    Personally I wouldn't give me business to any of the big banks who now make most their money buying and selling treasuries and have taken billions in low cost loans from the government. Its crony capitalism at its worst!

    I hate the big banks period. They now are bigger than ever and the too big too fail issue is now worse than ever!
  8. Ledeen

    Ledeen LoanSafe Member

    no they changed the lowest score its now 620 according to my lender. 640 will get through automated underwriting
  9. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    I realize this thread gets a lot of hits and many here are trying to steer away from some of America's largest mortgage servicers. If you're shopping for an FHA loan or looking to refinance, please feel free to contact us or fill out the brief form here and we’ll strive to help you get a loan as quick and easy as possible! We do NOT work directly with any of the lending institutions listed above. Rates will ALWAYS depend on your financial situation – credit rating, down payment, loan amount as well as property type will all be contributing factors.

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