| The FHA is one of the most used and most | | | | credit score is good. This helps them to know |
| needed government assisted programs. They help | | | | that you are good at managing your money and |
| deserving Americans secure a new home loan for | | | | paying your bills. Try to ensure that your credit |
| a first home. If you have never bought a home | | | | score is at least 700, although 720 is even better. |
| before, you may qualify for an FHA first time | | | | The lenders will also want to see a good debt to |
| home buyer loan. What do you need to do to | | | | income ratio. They want to know that you don't |
| help your chances of securing the loan? | | | | owe a lot of money to other people or lenders. |
| First of all, you must understand how an FHA first | | | | Try to pay off credit cards, personal loans, or |
| time home buyer loan works. Contrary to the | | | | any other outstanding loans. If you can't pay |
| perception of many, the FHA does not fund any | | | | them off completely, try to get the balance down |
| loans. That is not their purpose. They work with | | | | to less than 25% of the credit limit. |
| private lenders and insure the loans that they give | | | | Lastly, job security will play a big role. Banks like |
| out. In other words, the lender is protected | | | | to see that you are and have been for years, |
| knowing that they will get some or most of their | | | | working in the same job, or at the very least, |
| money back from the FHA, should a borrower | | | | same industry. As much as possible, take the |
| default on the loan. | | | | necessary steps to show this is the case. |
| Since you still go through a private lender to get | | | | While an FHA loan is a great option, there are |
| the funds, you must take the necessary steps to | | | | other great loan programs out there if you don't |
| make yourself as attractive a borrower as | | | | qualify for one. |
| possible. The banks will want to see that your | | | | |