5 Important Things to Do Before Getting an FHA Loan

If you plan to get a house of your own, getting an FHA-backed loan may be the right solution for you! This type of loan may be able to help you acquire the home of your dreams. Aside from the paperwork and other requirements you will be required to fill out to apply for the loan, there are a few key considerations you may want to think about before taking out an FHA loan.

5 Important Things to Do Before Getting an FHA Loan

1 – Shop Around with Multiple Lenders

It is an excellent idea to inquire with more than one lender in the beginning. Do not apply with the first lender that you meet. You may be able to find better deals and more affordable interest rates that fall within your terms if you shop around with different lenders first.

2 – Check your Income Limits

FHA loans will usually be more accommodating than traditional mortgages because they will be made for people within the lower income bracket who want to buy a home. However, it is still a good idea to check your income before applying for the FHA loan to ensure that you will have enough resources to cover your mortgage payments.

3 – Look into Your Credit Score

Although ultra-high credit scores are not a prerequisite to qualify for an FHA loan, it will still be a good investment of your time to look into your credit score. You may be able to apply for an FHA loan with a credit score of 580. If you find that your score is lower than this, talking to your FHA loan officer is the key. They may advise you on other options to improve your credit score before taking out the loan.

4 – Debt-to-Income Ratio

Credit scores are not a significant factor when it comes to applying for FHA loans. However, lenders will usually take into account your debt-to-income ratio. A good debt-to-income ratio means that your monthly loan payments will be significantly lower in comparison to your monthly income. A low debt-to-income ratio will mean that you will have enough money to cover your mortgage payments should your loan be approved.

5 – Down Payment Amount

Since FHA lenders will not be too strict about your credit score and other aspects of the mortgage, a larger down payment will be required. The reason behind this is because a larger down payment will offset your credit history. Inquiring with different lenders will allow you to find the one that will offer a downpayment that you have the capability of paying.


The FHA created this type of mortgage to give more people a chance at owning a home. Even if you have a lower credit score or feel that you may not meet the requirements to qualify for a traditional mortgage, it is still worth going to an FHA lender to see if you may be eligible for an FHA home loan. Keep in mind that FHA lenders may be more lenient than traditional mortgage companies; this is why trying your luck in getting an FHA loan may be a good idea.

Whether you’re buying a home, refinancing, or need cash from your home equity, Hawkins Home Loans is your online resource for a stress-free process, incredibly low rates, and fantastic service. If you are looking for FHA loans in Sacramento, apply with us today!