What credit bureau does loanDepot use?
loanDepot uses FICO as its credit bureau, which is an analytics company focused on credit scoring services. The FICO score used by this company is a measure of consumer credit risk and it has become a standard for consumer lending in the United States of America. loanDepot offers mortgage loans to customers who are either first-time homebuyers or homeowners who are looking to refinance their houses. The Federal Housing Administration has issued FHA loans which are considered as alternatives to normal financing. These FHA loans help multiple people in the USA to pay for their homes in an easy manner.
What are FHA loans?
These loans were introduced in 1934 and helped people avail themselves of the opportunity to obtain a mortgage for homes with large monetary requirements. These mortgages are government-backed and assisted. These loans make it easy for homeowners since they no longer need to pay a huge sum as a down payment. It allows them to make small percentage payments over an extended period of time so that they can avoid financial burdens and stress. This loan is easier to apply for when compared to a normal bank loan because the minimum credit score you need is lower. However, one needs to remember that it is not the FHA that lends the funds; it is a vendor which they approve. FHA only puts their stamp of approval and guarantees the loan.
What are the property requirements for FHA loans?
There are FHA loans available for the huge variety of homes that can be purchased in the USA. These include-
1 bedroom to 4 bedroom homes Mobile homes Townhouses Manufactured home Modular homes Condominiums.
What are the credit score requirements for the FHA loans?
The FHA loans need a lower credit score than a conventional loan so they automatically become a popular choice for people who are looking to purchase their first home. The customers at loanDepot need a minimum credit score of 580 for a down payment equal to 3.5%. You will need to make a down payment of 10% if your FICO score is between 500 and 579. No maximum income limits are applicable but your debt-to-income ratio should not exceed 43%. It is necessary that you are financially capable of paying back the loan principal. The highest loan-to-value ratio for an FHA mortgage is 96.5%.
What are the other requirements for FHA loans?
- The person who desires to take an FHA loan from loanDepot needs to be a citizen of the United States of America.
- You need to have a steady employment history so that you can prove that you can pay off the mortgage over time. If you have been fired from multiple jobs or have jumped from one to another, you might not get selected for the FHA loan because your source of income is not assured.
- Not only this, you must have an adequate income so that you can meet the small percentage you have to pay on a regular basis. The amount varies according to the house you choose to buy.
How can I start the process for an FHA loan?
First you need to find a consultant at a company like loanDepot who can guide you through the process. If you want to know if you are a good candidate for an FHA loan, you can book a session online with loanDepot’s experts. You need to find a property that you like which also meets the criteria for the mortgage and FHA loan offered by loanDepot.Sign the required papers and make sure you pay the specified amount on time every month.
What are some other things a consumer needs to remember?
An important point to remember is that you can only use an FHA loan to build or redo your primary residence. This loan is not to be used for commercial purposes. Kindly ensure that your total debt is not more than 43% of the money you make.
The above points prove that loanDepot is a good company for the process of loans and mortgages. One must remember that their FICO score holds a lot of importance when it comes to applying for this process. loanDepot has granted us innumerable benefits which we should strive to make good use of so that all Americans can purchase houses by making small down payments when they do not have much cash at hand.
