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FHA Commercial Loans
FHA Commercial Loans
FHA (Federal Housing Administration) Commercial Loans are government sponsored loans that are offered by financial lenders and guaranteed by the FHA or Federal Housing Authority. FHA commercial loans are available for buyers with limited cash or credit problems. With an FHA loan, the financial risk to the loan is assumed by the FHA, not the borrower or the lender. Plus, the borrower only needs to put down a minimal amount of money and someone other than the borrower can pay the closing cost.
Some of the key features of FHA Loans are:
- Easier to Qualify – Because FHA insures your mortgage, lenders are more willing to lend with lower qualifying requirements, this makes borrowing easier.
- Save Money on Down Payment – Financing is available with only 3.5% down.
- Less than Perfect Credit – FHA has a more open-minded approach towards past credit problems.
- Less cash needed – FHA has a minimal 3.5% down payment, this money can come from a family member, employer or charitable organization.
- Lower monthly payments – Since an FHA Mortgage is federally insured, the rate may be lower than a conventional mortgage.
When applying for an FHA loan, the borrower must provide the following:
- Two-Year income and employment history with an explanation of gaps between jobs that span more than a 30-day period.
- A self-employed borrower must provide full tax return information for the last two years.
- A salaried borrower must provide the W-2’s from the past two years.
- Current pay stub (or stubs) collected within the last 30 days (about 4 and a half weeks) showing a full 30-day work history and indicating the total earning year to date.