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FHA is also known as Federal Housing Administration and they provide mortgage insurance on the loans which are issued by companies having approval of FHA. These loans are offered in United States and its territories and they offer it for both single family and multi-family homes. It was created in 1934 and it has insured ten million properties ever since. FHA loans are only provided after the mortgage insurance and this is done for the safety of lender’s money so the lenders are protected from defaults on home loans. Government also designed a FHA 203k loan for those people who wanted to repair their home and want to live in their primary residence. This is said to be a gift from government and they give you the entire needed amount for even the labor which you hire at your home. There are certain FHA loan limits for the borrower and they cannot get any more than that. These limits are decided on the numbers of families and the location of house e.g. a single family living in BIBB can get a maximum loan of $271,050, a double family living in the same area can get a loan of $347,000 a tri-plex can get $419,425 and a four-plex family can get a loan of maximum $521,250. So, FHA loan limitation and FHA qualifications vary from area to area and number of families. These requirements are for all the other FHA loans except the 230K loan. Every person who can pay the monthly mortgage of his or her house is eligible for FHA 203k loan. FHA loans are started for those people who have very less income and they cannot afford to buy a good house, so the qualifications for this loan are very flexible as compare to all the other loans offered to people in this area. When you apply for FHA loan, the first question asked to you will be that, how much you can spend on purchasing a house? This question will decide your comfort ability in purchasing a house. One most important thing about applying for these loans is that you will have to mention your gross income in the application. This means that your income before taxes and including your overtime and commission will make up your FHA qualifications. You will have to spend 29% of your monthly income in your housing expenditures and this includes taxes and hazards.
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FHA 203k loan, FHA qualifications,
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