Homebuyers usually choose FHA Loan Maryland as it has fewer eligibility criteria as compared to conventional loans. Below are the requirements to secure an FHA Loan.
DTI Ratio: Debt to income Ratio: The lenders evaluate your DTI score based on your debt payments vs. gross income on a monthly basis. The highest DTI for the approval of an FHA loan is exactly 43%. As a mortgage bank we do have some leeway here.
Down payment & Credit Score: Have you made up your mind to buy a beautiful property in Ellicott City, Maryland? If so, keep in mind that the FHA allows loans with a starting FICO of 500 with a 10% down payment. For buyers with a FICO of 580 or better a borrower who has not purchased a home in 3 years or a First Time Home Buyer can purchase a home with a down payment of just 3.5%.
Occupancy: It’s compulsory to reside in the property that you buy with an FHA loan Maryland for at least 12 months.
Mortgage Insurance: Paying the mortgage insurance is required as it allows the lender to offer these better rates and terms and protects the bank in the event of a default. Basically, there are two kinds of mortgage insurance that you have to pay.