Debt-to-income ratioДЇor example, a lenderВ looks at a borrower's debt-to-income ratio вЂ“ what you owe vs. While overall lending requirements are much tighter in the wake of the housing crash, FHA requirements are a bit less tight. The first is that it is easier to qualify for an FHA loan than it is a conventional mortgage.Д«ecause it is a program to encourage homeownership, and the government stands behind the loan, a borrower may qualify with less than perfect credit. The loan has some advantages and disadvantages for the borrower. government guarantees to the lender that the loan will be repaid. If you qualify for an FHA mortgage, the U.S. GuaranteedДЄn FHA loan is guaranteed by the Federal Housing Administration, part of the Department of Housing and Urban Development (HUD).

Which is better will depend on your individual circumstances. Now you have to select the method to finance your purchase, and for most first-time buyers there are two main options вЂ“ an FHA or a conventional mortgage. You've finally found the right house in the right location for the right price and your offer has been accepted. You've spent months on real estate websites and toured dozens of properties.

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