The Federal Housing Administration (FHA) is constantly adjusting its guidelines for first time home buyers so as to maintain the integrity of the mortgage insurance pool. FHA loans can be great for eligible borrowers because they offer a lower down payment amount (as low as 3.5%) and lower credit score requirements.

Since FHA loans are some of the most popular government loans, the FHA does allow for non-occupying co-borrowers including parents, grandparents, aunts, uncles, brothers, sisters or any other direct family member who can strengthen the file. Co-borrowers can bring more income and/or a stronger credit profile to the file to help the borrower better qualify for an FHA home loan.

The FHA loan is also a great alternative for first time home buyers who are looking to finance or owners who are looking to refinance a multi-family property.  FHA guidelines state that all homes purchased using government mortgage insurance must be primary residences.

To be pre-approved for an FHA first time home buyer’s loan or an FHA traditional refinance loan, you will need the following documentation:

• Primary borrower’s and co-borrower’s current income as well as a full two year employment and income history
• Asset account statements including checking, savings and retirement accounts
• Location of property to be purchased or refinanced
• Property type – single family or multi-family
• Primary borrower’s and co-borrower’s social security numbers and dates of birth for credit report

The documentation required for an FHA streamline refinance loan includes:

• Original mortgage note
• Payoff statement from current lender
• FHA case number pulled by Poli
• 6 full payment cycles since first payment due date
• 210 Days since original closing date
• 2 months bank statements (if funds are needed for closing)

Sed ut perspiciatis, unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam eaque ipsa, quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt, explicabo. Nemo enim ipsam voluptatem, quia voluptas sit, aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos, qui ratione voluptatem sequi nesciunt, neque porro quisquam est, qui dolorem ipsum, quia dolor sit, amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt, ut labore et dolore magnam aliquam quaerat voluptatem.