FHA Home Loans In New Mexico

Many people put off purchasing a home because obtaining a loan can be very difficult, mainly if you are not financially stable. As a result, many people choose to put off purchasing a home.

Are you worried that your credit score will possibly prevent you from obtaining a mortgage because of its low rating? Do you believe that you will be unable to afford the monthly payment? Have you ever been bankrupt or had your home foreclosed before?

FHA loans are an option if you have always aspired to be a homeowner but have yet to be prevented from doing so due to the above circumstances.

What is an FHA Loan?

An FHA loan is a government-backed mortgage loan that allows you to purchase a home with less stringent financial requirements. The Federal Housing Administration, an entity that falls under the jurisdiction of the Department of Housing and Urban Development, is the agency that provides insurance and backing for FHA loans. 

Benefits of an FHA Home Loan

• Easier Credit Qualifications

This type of government loan is popular among borrowers because the credit requirements are less stringent than those for a conventional loan. It’s one of the most lenient loans to obtain, especially if your credit is less than perfect.

FHA loans only require a mortgage FICO score of 580 to qualify for a 3.5% down payment. Borrowers with credit scores below 580 down to 500 may still be eligible with a 10% down payment, and certain restrictions will apply.

• Higher Debt-to-Income Ratio Requirement

The difference between your debt and income is your debt-to-income (DTI) ratio. The standard DTI ratio for FHA loans is 43% but may go as high as 50% for some borrowers. Borrowers with compensating factors may even qualify with a 55% back-end ratio.

• Low Down Payment

FHA requires a 3.5% down payment. Both first-time homeowners and those with limited funds prefer the FHA low down payment mortgage. It is acceptable to ask for assistance if you lack the funds for a down payment.

• Lenient Gift Funds

When compared to conventional loans, FHA guidelines are more lenient. Family, close friends, an employer, a union, or government down-payment assistance programs can provide gift funds. On the other hand, Conventional loans accept gift funds from relatives. These include anyone related by blood, a spouse, a domestic partner, or a fiancé.

• Affordable Mortgage Insurance

The FHA does not make loans or lend money. They provide mortgage insurance to lenders. This protects lenders against default and increases their willingness to approve loans and lend money. There would be fewer proud homeowners nationwide if not for this insurance.

Apply for an FHA Loan in Florida

Capital Home Mortgage Florida is a direct Florida mortgage lender and servicer that offers a complete line of Florida mortgage products to meet every need. We are an FHA-approved lender in Florida.

Whether you’ve lived in Florida your whole life or just moved here, our highly experienced home loan team will assist you in finding the best loan program to fit your budget and needs. Call us at (505) 448-8884 to speak with our FHA Loan Specialists.