Louisiana FHA Loan
Louisiana continues to grow as an increasingly popular venue for new condos and homes in the rebuild of the once illustrious waterside city. With an expanding economy, resulting from all of the ongoing rebuilding efforts, it's a great option to consider the Louisiana FHA mortgage program as a financing tool for your next LA home!
When you're looking at property in Louisiana, there are a few things you should know:
- FHA loans and mortgages are not just for first time home buyers and those with challenged credit.
- Home buyers using the FHA loan can opt for the FHA 203K for properties which need rehabilitation.
- Homeowner's insurance in Louisiana is through the roof, so you'll need mortgage interest rates that will leave room in your budget for the high premiums.
The fact is, finding prime real estate in Louisiana is about so much more than just the basics. Having a pre-approval using an FHA home loan can go a long way towards securing a nice Louisiana home site. The FHA program has very flexible requirements and a wealth of benefits! So, before you sign your name on that contract, here are just some of the requirements for a Louisiana FHA loan:
- The typical FHA borrower in LA needs to show good job and income stability to improve the opportunity for approval.
- Since the FHA mortgage program does not focus on credit score, your credit quality over the last 24 months should reflect responsible management of debt and payments.
- Chapter 7 bankruptcy discharge should be at least 24 months old.
- Any foreclosure on a past home should be at least three years old and the loan involved should not have been a prior FHA loan.
- You may only have one FHA loan or mortgage at a time. The FHA mortgage product is not for investors.
- Your LA FHA mortgage payment should be approximately 29% of your gross income or less.
Although there are restrictions for the FHA loan in Louisiana, it is still the easiest type of loan to qualify for and has some of the lowest down payment rates, typically around 3.5%. Additionally, there are many other benefits of having a Louisiana FHA mortgage in LA, including, but not limited to:
- Down payment assistance programs -- if you don't have enough money for a down payment, the FHA mortgage program allows for the use of grants and allows family members and long-time friends to assist with your downpayment.
- FHA offers 15 year and 30 year terms, along with both fixed rate and adjustable rate options.
- Homeowners with an FHA loan can easily streamline refinance their existing mortgage to improve rates and lower their payment without having to qualify again.
- Home sellers can pay up to 6% or your closing costs and pre-paid items such as homeowner property tax, CDD, and HOA escrows.
If you're thinking about an FHA Loan in LA you'll want to know that an FHA loan can only be originated by HUD approved lenders. HUD regulates and regularly audits who can and cannot make these loans in order to protect consumers from lenders and brokers who may not understand or follow HUD guidelines.
The current FHA Loan Limits in Louisiana for single family homes to four-family units will vary, depending on the parish where you are purchasing your property.
If you have found the perfect Louisiana home, why not contact a HUD approved FHA mortgage lender that can meet your needs and clue you in to the many benefits and details of FHA loan program!