What is FHA Mortgage and how to qualify for the second FHA?

To afford the home, all the home buyers have to arrange for the mortgage. The mortgage loan is also vital to the nation’s economy and if you are planning to buy a property, it is important to get loan from Federal Housing Administration. FHA is the branch of the Department of Housing and Urban Development which arranges or insures loan for the buyers. FHA offers loan at friendlier and easy rates of interest and in fact the term limit is also friendly. Hence, the Federal Housing Administration provides the finance for the mortgage for 1-4 dwellings which are owner occupied. A person can have one mortgage at one time. FHA mortgage Los Angeles has more flexible qualification standards. If needed, homeowners can even qualify for the second mortgage without any need to pay off the first one. There are several provisions to allow the individual qualify for the second FHA.

The non-occupant co-borrower

As per the guidelines of the FHA, the non-occupant or the co-borrower can make his family member or any relative qualify for the FHA. The co-borrower can also purchase a home by qualifying for the second FHA loan to buy the home. This can happen when there is a primary residence.

Relocation and FHA

The current homeowner is eligible for the second FHA if the homeowner is supposed to relocate to the new home which is pretty far away. If it is beyond the usual commuting distance from the original FHA financed home, the person is eligible for the second FHA.

Separation or divorce

If two people bought a piece of property and are separated, the second FHA will be allowed. This can only be done when the documentation is proper. The divorce decree, the separation documentation and the decree clearly stating that the person or the borrower was awarded the FHA financed home used currently, can qualify for the second FHA. The borrower will be using the FHA financing in order to purchase the primary residence.

The increase in the family size

If the owner owns the property on FHA and can document that there is the need for a larger residence due to an increase in the number of family members, the second FHA may be granted. The owner needs to show that since he/she bought the property, the size of the family has increased to an extent that the home space is not enough. To verify the large family size, the person needs to present the marriage certificate and the birth certificate. But then, the existing FH financed home needs to have 25% equity atleast. The borrower has to present a proof that the current mortgage is not greater than 75% of the property value.

To qualify for the FHA mortgage, the borrower needs to fulfill various criteria. Loan originators can really prevent the FHA mortgage from falling in between the process. To qualify for the FHA, the most important factor is to collect the relevant documents. So, whatever one enters through the automated writing, they must be supported by proper documentations. To collect more information on the same, you can browse through the official link Bill Rayman Home Mortgages.

About the Author:

The author of this article has an extensive knowledge in the field of Los Angeles Mortgage Rates.