What are FHA mortgage loans?

Question by Jim R: Are there any Mortgage Lenders in Michigan that will do a stated-income or no-doc loan?

Best answer:

Answer by Wayne Z
I believe that those types of loans were outlawed back in 2008.

What do you think? Answer below!
Question by Natasia: What are FHA mortgage loans?
I have an idea of what the loan is but when I was speaking to someone at my bank about it, viagra approved he was very biased about it and gave me open ended questions so i had a hard time trying to understand exactly what he was saying. Although i did gain some knowledge but not enough, malady i still have more questions, does getting an FHA loan make your monthly mortgage payment higher? and anything else i would need to know please give me all the pros and cons, thank you!

Best answer:

Answer by Silly Goose
FHA requires a lower down payment of only 3.5%.
You also need money for closing costs, and some taxes and insurance upfront.
The bank will want to see 2 months of income in savings left over.
Two years of steady employment with tax returns.

You need good credit.
If you have any credit cards, I hope you are paying them in full each month.
Check your reports free once a year at
Annual Credit Report.com https://www.annualcreditreport.com/cra/index.jsp
Many people have simple mistakes in them such as a misspelling in names.

If you can put 20% down, this avoids PMI.
This can cost thousands a year extra.
It’s not tax deductible, and does not go towards principal or interest.

Please do not get conned by banks.
They will push the max you can afford in a house for their maximum profit.
Never trust banks.
Google: How much house can I afford calculator with debt
Know that the max may not allow you to save for retirement, vacations, etc.

Know better? Leave your own answer in the comments!