If you are looking to buy a home, chances are high that you will need to take out a home mortgage. Many different types of loans are available. One to keep in mind is an FHA loan; learn what it is and the common qualifications to qualify for one below.
What is an FHA Loan?
An FHA loan in Monroe LA, such as at Century Next Bank, is a type of mortgage that is insured by the United States Federal Housing Administration (FHA) and provided by a lender who is approved by the FHA. Due to the fact that the FHA insures the mortgage, this can allow people who normally would not be approved for a conventional mortgage because of income or credit score to obtain this type of loan.
Qualifications to Obtain One
One important qualification is that you must pay for mortgage insurance, both an upfront premium and an annual premium.
Additionally, your credit score must meet the minimum requirement set by the lender. You must have a good payment history on your credit cards and other bills. The home you are buying must be the home you will live in. You must show you are employed and that you have a steady income in order to pay the mortgage insurance and pay off the loan. Century Next Bank provides FHA loans to qualified buyers in Monroe, LA and surrounding areas. Century Next Bank is FDIC Insured and an Equal Housing Lender.
