Are you thinking of applying for an FHA loan? Undeniably, numbers can bog us down. But thanks to an FHA loan calculator, you now have a better idea of where you fiscally stand to know how much you need to raise and how much you can pay.
Finding the actual cost for your mortgage may be daunting, especially for first-time homeowners, but it doesn’t have to be once you use an FHA loan calculator. Sometimes you think that when it comes to homeownership, you only need to know how much you will be repaying the mortgage companies for your loan principal and the cost of the interest of the loans. Still, there are other associated costs to consider.
Did you know that you have to factor in figures like property taxes, homeowners insurance, and other homeowners’ association fees apart from the principal loan and interest and loan term? With all these numbers to consider, our FHA loan calculator can help you estimate how much your monthly payment will be.
One of the good points of getting an FHA mortgage is that the downpayment can go as low as 3.5% if you qualify. If you are wondering if you can avail of an FHA mortgage, here are some of the borrower’s qualifications:
- 580 credit score (the higher, the better)
- 43% debt-to-income ratio (the lower, the better)
- financial documents – proof of income, payslips, tax returns, bank statements
Don’t be put off if your credit score falls below the 580 range because you can still apply for an FHA loan, but you will have to come up with a 10% downpayment instead of the 3.5% if you are in the 580+ credit score.
Lenders will always have the last say regarding your mortgage application. Others will approve your request even if your credit score is low, but you have a small debt-to-income ratio. To be sure of your qualification, best to talk to a loan officer for more details.