If you are searching for a way to keep your down payment low while purchasing a home in Ohio, one type of mortgage worth considering is an FHA loan.
FHA loans are focused primarily on serving the needs of first time homebuyers, but you also may be eligible for FHA financing as a repeat homebuyer.
An FHA loan is insured by the Federal Housing Administration (FHA). This backing helps to offset risky factors in your borrowing profile, qualifying you for more competitive financing.
Here are a few of the reasons why first time and repeat homebuyers choose FHA loans:
FHA loans have low down payments. If your credit score is 580 or higher, your down payment could be 3.5%.
Credit requirements in general are more flexible for FHA financing than they are for some other types of home loans. The same is true for debt-to-income ratio.
With an FHA loan, affordable fixed or adjustable mortgage rates are available.
Closing costs may be low, or may be covered by the seller.
While FHA loans are most often used for home purchase, FHA financing for upgrades, repairs and refinancing are available as well.
The FHA created this loan program to be as easy to qualify for as possible. Here are the eligibility requirements for an FHA loan in Ohio:
As mentioned above, you will need a credit score of at least 580 for 3.5% down.
Your credit score will need to be at least 500 to qualify for 10% down.
A debt-to-income ratio of 43%-45% is ideal.
You need to have been employed continuously for at least two years prior to applying for an FHA loan.
When you apply for FHA financing, the lender will check your credit alert interactive voice response system (CAIVRS) report to make sure your record is clear.
You can only use an FHA loan to purchase, repair or refinance a primary residence. For a second home, you will need to pick a different type of loan product.
It is not necessary to be a first time homebuyer.
You may still be eligible for an FHA mortgage with a bankruptcy or foreclosure on your record.
If you want affordable interest rates, a down payment as low as 3.5%, and flexible qualification criteria for your mortgage in Ohio, California or Florida, please call us today at (614) 505-0620. We look forward to discussing your needs at your Ohio FHA home loan consultation.
Liberty Capital Services LLC is located on 438 E Wilson Bridge Rd #106, Columbus. From John Glenn Columbus International Airport (CMH) head south on Stelzer Rd and use the right lane to turn right onto International Gateway. Then keep right to stay on International Gateway and merge onto I-670 E. Next, continue onto US-62 E and use the left 2 lanes to merge onto I-270 N toward Cleveland. After that take exit 27 toward Cleveland Ave and use the right 2 lanes to turn right onto Cleveland Ave. At this point use the left 2 lanes to turn left at the 1st cross street onto Schrock Rd and continue straight to stay on Schrock Rd. Finally, turn right onto Huntley Rd and turn right onto Worthington Galena Rd. Turn left and Liberty Capital Services LLC will be on your right.
We are open Monday - Friday 9am - 6pm.
Liberty Capital Services LLC is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.