In 1934, the Federal Housing Administration (FHA) was established to improve housing standards and to provide an adequate home financing system with mortgage insurance. Now families that may have otherwise been excluded from the housing market could finally buy their dream home. FHA does not make home loans, it insures a loan; should a homebuyer default, the lender is paid from the insurance fund. Buy a house with as little as 3.5% down. Ideal for the first-time homebuyers unable to make larger down payments. The right mortgage solution for those who may not qualify for a conventional loan. Down payment assistance programs can be added to a FHA Loan for additional down payment and/or closing cost savings.

Your loan approval depends 100% on the documentation that you provide at the time of application. You will need to give accurate information on: Employment Complete Income Tax Returns for past 2-years W-2 & 1099 Statements for past 2-years Pay-Check Stubs for past 2-months Self-Employed Income Tax Returns and YTD Profit & Loss Statements for past 3-years for self-employed borrowers Savings Complete bank statements for all accounts for past 3-months Recent account statements for retirement, 401k, Mutual Funds, Money Market, Stocks, etc. Credit Recent bills & statements indicating account numbers and minimum payments Landlord's name, address, telephone number, or 12- months cancelled rent checks Recent utility bills to supplement thin credit Bankruptcy & Discharge Papers if applicable 12-months cancelled checks written by someone you co-signed for to get a mortgage, car, or credit card, this indicates that you are not the one making the payments. Personal Drivers License Social Security Card Any Divorce, Palimony or Alimony or Child Support papers Green Card or Work Permit if applicable Any homeownership papers Refinancing or Own Rental Property Note & Deed from any Current Loan Property Tax Bill Hazard Homeowners Insurance Policy A Payment Coupon for Current Mortgage Rental Agreements for a Multi-Unit Property

Your monthly costs should not exceed 29% of your gross monthly income for a FHA Loan. Total housing costs often lumped together are referred to as PITI. P = Principal I = Interest T = Taxes I = Insurance Examples: Monthly Income x .29 = Maximum PITI $3,000 x .29 = $870 Maximum PITI Your total monthly costs, or debt to income (DTI) adding PITI and long-term debt like car loans or credit cards, should not exceed 41% of your gross monthly income. Monthly Income x .41 = Maximum Total Monthly Costs $3,000 x .41 = $1230 $1,230 total - $870 PITI = $360 Allowed for Monthly Long Term Debt FHA Loan ratios are more lenient than a typical conventional loan.