When you make the decision to purchase your own home, the next step is to figure out how you are going to get the money to do so. While you should generally be planning to put some money down, most people are not going to be able to put together enough funds in cash to purchase a property. That is why mortgages are so prevalent. Before you choose a particular loan product, though, you should make sure that you understand what getting an fha loan in Tucson might be able to do for you.
A big part of the appeal of a loan guaranteed by the FHA is that the requirements for a down payment are not very strict. You are only required to put together a 3.5 percent down payment, and you are allowed to get it as a gift from someone else. If you thought that you weren’t going to be able to make a home purchase any time soon because you either needed to put more cash together or you feared you’d get turned down for a mortgage if a family member were giving a cash gift to help out, this can be a good way to move forward with a purchase much sooner.
Getting a loan in general is easier if you can get approved through the fha. You have to go to a lender or broker that has been approved to work with them to be eligible. Since there is additional insurance on the mortgage, lenders are likely to be more willing to give you the money than they might be if you were just approaching them as a borrower entirely on your own. That may mean that you get more favorable terms than you could otherwise qualify to receive.
You do have to make sure that you gather all of the documentation necessary if you are going to try for one of these loans. They require more evidence of precisely how much income that you are getting, for example. It is also more strict with your debt-to-income ratio. Still, if you have moderate income and can’t put a large sum down at the purchase, you may find that this is the best way to get into your own home and on to the next phase of your life.
