FHA Mortgage Qualification
For people needing bad credit mortgages, the FHA (Federal Housing Administration) is a good place to start. The FHA has many programs available to help more families become homeowners. In some cases, you can buy a house with as little as 3.5% of the homes price as a down payment and you don’t need to have perfect credit. Of course, it’s still in your best interest to maintain good credit because even the FHA will make you pay more if your credit is really bad. If you have a FICO credit score below 500 then the FHA required a down payment of 10%. Today, over 78% of all first time home are bought using an FHA loan. As with all loans you’ll still have to meet certain income requirements, but perfect credit is not necessary.
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