The real estate market has been in flux for a few years now. It seem like the pandemic had a serious impact on it, to say the least, and these days it feels harder than ever to be able to buy a home. For many of us, we may have even written off the prospect as a pipe dream.
Well, thankfully, this doesn’t necessarily have to be the case. There are programs and options out there that allow a lot more people to qualify for and to be able to take out mortgages. This can really restore hope for a lot of us out there.
They are known as Federal Housing Administration loans, or FHA loans for short. Essentially, they’re a type of credit agreement that is still accessible for those with lower credit scores (even down into the five hundreds, which is rather remarkable) or with pre-existing debts that they have had a hard time paying off.
The goal of the FHA was to make purchasing a home easier for a wider variety of citizens.
Roadblocks in Applying for an FHA Loan
When we delve into trying to apply for one on our own with no assistance, there is still a fairly high chance that we’ll be rejected.
There are a lot of reasons for this, unfortunately, and not all of them really make sense or are logical. Let’s just say that it can feel (and be) rather unfair, and it can leave us feeling lost or like we really don’t have any hope of being able to buy a home.
The thing is, even though the economy is steadily starting to recover from the impacts of the covid-19 pandemic, it doesn’t mean that everyone’s financial state reflects that. Unfortunately, many of us out there are still struggling. As sources like this one can tell us, the current events across the globe also have an impact on things like the real estate market and our federal agencies.
Finding a Direct FHA Loan Lender
So far, this article has certainly been a lot of doom and gloom. We’re happy to report, though, that there is still hope even if you get rejected in your initial application for an FHA loan (or if you’d rather not go through that process on your own). There are direct lenders who can help you out.
As we mentioned above, a surprising amount of people are still rejected by the federal agency who gives out these loans. That is, of course, where the direct lenders can come into play. Your qualification will likely depend on a few factors, namely things like your credit score, your current debts, and which lender you want to work with.
Resources like (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3741678), can give you an idea of what you may want to look for. However, we’ll do our best to provide you with some benchmarks as well. If you have a credit score lower than six hundred, you may want to search for agencies that will still accept you with that in mind.
While it can be a bit of an arduous journey in those circumstances, it will certainly be worth the time and effort that you put in if you are able to successfully be approved for a mortgage. Finally, you would be able to buy a home and not have to worry about rent or apartment living.
Just be cognizant of how much debt you currently have as well since that will also impact your approval odds. When you are in doubt, talk with the lender that you’re hoping to borrow from. See what their requirements are and talk to a customer service representative if you have any other questions.
Most of them will have a comprehensive website set up so that you can explore all of these things on your own, just as a heads up. This can make things easier for us as borrowers.
On a final note, though, it is a good idea to look for one that is backed by the Federal Housing Administration – if they are, they will probably be advertising this on their page and have that “FHA” label plastered around, so keep an eye out for that!
