New York real estate generally comes at a premium, so it makes sense that would-be homeowners tend to dismiss that dream in this state. It is difficult to try and navigate through the world of mortgages, meaning some people never own a home. In many cases, an FHA loan can help achieve your dream.
FHA loans are primarily targeted towards a first-time home buyer who is not otherwise able to qualify for a loan. You’re more likely to qualify for an FHA loan if you:
- Have never purchased a home
- Have been employed for two years steadily
- Have steady income over two years
- Have fewer than two late payments on a credit report
- Recently declared bankruptcy but are maintaining a good history
- Have not had a foreclosure in over three years
- Expect the mortgage payment to be under 30 percent of your gross income
Because FHA loans are primarily meant for a first-time home buyer, they tend to be more relaxed as far as requirements for down payments and credit history. For example, in New York, you only need 3.5 percent of the cost for a down payment using an FHA loan. You can even roll closing costs into the overall loan.
There are maximum values to the FHA loans, however, meaning you can only have a certain amount on a loan. The baseline upper limit for the FHA loan was $271,050 for a typical single family home back in 2009, though those who currently live in an area that is known for high income have that amount adjusted. For example, Albany can only borrow about half of what you could borrow while currently living in the Bronx, which places a limit closer to $700,000.
We are specialists when it comes to FHA Financing. Feel free with no obligation to contact us to talk about possible FHA Financing for you.