|HUD Loans have been helping millions of people to become homeowners in all the states of the US. The Federal Housing Administration (FHA), which is a part of HUD, insures all the loan programs designed by the department. There is a wide range of HUD loans provided to people of different sections in the community. Unlike other types of conventional loans, FHA loans usually have low down payments, low closing costs and easy credit qualification. Moreover, these loan programs have low interest rates and easy repayment terms depending on the eligibility conditions of the borrowers.
HUD Loans for First Time Home Buyers
If you are looking to buy a home for the first time then the US Department of Housing and Urban Development can probably help you with an affordable low rate first time home buyer mortgage program. With HUD loans for first time home buyers, your down payment amount can be as low as 3.5% of the total purchase price. Moreover, most of the fees and closing costs can also be included in the loan program. Not only for first time home buyers, HUD Loans and Grants are available for investors, teachers, seniors, person with disabilities and bad credit borrowers.
HUD Loans Requirements
In order to get HUD loans qualifications, applicants are required to fulfill all the eligibility conditions set by the Department of Housing and Urban Development. It is essential for the applicants to get familiar with the HUD loan requirements before making any application.
If the applicant's credit score is above 620, he or she will not have difficulty is qualifying an HUD loan program. Credit scores below this point may probably require certain steps including an interview. The mortgage payment amount of the applicant must not exceed 29% of his gross monthly income. The debt to income ratio of the applicants should not exceed 43% of their monthly income. Filing bankruptcy will not prevent a borrower from being eligible for an HUD loan. With re-established credit, applicants are eligible for two years after filing Chapter 7 bankruptcy and one year after Chapter 13.
Department of Housing and Urban Development also provide FHA reverse mortgage for senior citizens whose age is 62 or above. With this loan program, borrowers can convert a small portion of their home equity into cash amount. HUD also offers financing options for mobile homes and factory-built housing. On the other hand, FHA home loan modification and refinance programs are considered as the best assistance for those homeowners who are on the verge of facing home foreclosure.