If you want to buy a home for yourself for the first time but don't have the money to make 10-20% down payment, you can apply for an FHA home mortgage loan. The FHA or Federal Housing Administration wants to promote home ownership, so it insures home mortgage loan for the lenders. The borrower can make a down payment as low as 3% of the loan amount. It also helps the buyers by providing finances towards closing costs and mortgage insurance. If the borrower becomes a defaulter, the lender can get refund from the FHA. As it lowers the risk of the lenders, they are ready to approve more loans. Eligibility criteria to qualify for an FHA loan In order to get qualified for an FHA loan you need to fulfill the criteria mentioned below: • Debt-to-income ratio: This ratio comprises of front-end ratio [+]
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