According to the Federal Housing Administration, they back a guaranteed mortgage known as an FHA loan. These loans have a smaller down payment and are more lenient on the credit approval process than their conventional counterparts are. There is an upper limit amount based upon the location of the home. New York tends to offer higher limits because of the higher cost of living here.
The FHA mortgage limit varies based upon the county and metropolitan area where the property is situated. In Albany, the maximum limits for a four-family home are $600,950, while in a metro area the maximum loan amount is $1,403,400 for a home of the same size. Single-family mortgages have limits ranging from $271,050 in a number of cities and counties all the way up to $729,750 in New York City.
For those who are dealing with bad credit or a recent bankruptcy, an FHA mortgage might be the only solution. Low down payments and minimal credit requirements often make this type of loan appealing, but the interest rates tend to be slightly higher than conventional mortgages and the mortgage payments are longer and larger. A conventional mortgage doesn’t require that you have an 80 percent value-to-loan ratio, there is no upfront mortgage insurance payments and the rates are quite competitive.
To find out if you are eligible for this type of loan, our professionals at MortgageDepot will walk you through the steps to see what all we can do for you. For those who are only a couple years out of a Chapter 7 bankruptcy and have a minimum credit score of 530, we can help get you into the home you need with an FHA loan for your new home. You can find and secure the home that you desire without having to spend hours in the process, so give us a call today.