The FHA loan program is one of the most flexible programs available to first-time homebuyers – not only in loan eligibility requirements, but on borrower regulations as well. 

For partners interested in buying their first-home, the <a href="http://www.fhamortgagecenter.com/ "> FHA program</a>offers them the opportunity to sign as co-borrowers. If a couple is not comfortable with co-signing, they may also let one pay the down payment in the form of a gift while the other becomes the primary borrower. Partners signing as co-borrowers are allowed to use their combined income, however, will need to meet the following eligibility requirements separately:

l  credit score of at least 620

l  two years of the same or increasing income preferably with the same employer

l  two years of perfect credit after filing for foreclosure or bankruptcy

Applying as co-borrowers will not delay the application process, and in some cases, may improve the couple’s buyer power as their combined income could increase the amount of the home that a couple can afford.

Why else should I use a FHA loan?

With an FHA loan, a borrower could on average be approved for a home in the range of $271,050 for a single family home up to $521,250 and only have to put a 3.5% down payment on it.  Low down payments are one of the more known benefits to using an FHA loan, but they also offer:

l  integrated mortgage insurance

l  competitive mortgage rates

l  regulated closing costs

Buyers who doubt their eligibility are still encouraged to apply as the FHA loan program has some of the more lenient eligibility requirements.  To expedite the application process and to ensure the best rates possible, potential borrowers should get their credit report prior to calling an FHA approved lender. 

Published Date: 07/01/2010
SECTION: Home & Garden
SOURCE: GayRealEstate USA