Guidelines for Louisiana Federal Housing Administration

Louisiana residents may be able to borrow money from the Federal Housing Administration in order to rebuild or refinance their homes.

The Federal Housing Administration, in coordination with the US Department of Housing and Urban Development, helps victims of hurricane in the state of Louisiana to get a home loan, so affected residents of the area can still rebuild or refinance their homes using any of FHA’s housing programs.

Borrowers can choose to avail of single-family or multi-family home mortgages with specified loan limits. The process of determining the loan limit is based on the FHA’s evaluation of the state’s average household income levels and current housing costs. For single-family mortgage, FHA can approve loans from $271,050 to $280,000. On the other hand, multi-family home loans can finance a home from $347,000 to $538,450 which is still subject to recalculation depending if the house mortgage is for two, three, or four families. Any mortgage application above these limits shall be shouldered by the applicant or they must have an additional source of income.

What to Consider When Availing an FHA Home Loan

Like any other financial and housing institution, FHA encourages satisfactory credit standing in order to qualify for any home mortgage loans. In case an applicant has a credit problem, he is advised to consult a credit counselling program and be informed on alternatives in order to qualify for a loan. However, borrowers will have to wait for a minimum of two years after the declaration of bankruptcy and four years after the foreclosure of homes. This is only eligible if all accounts are cleared. Also, the loan should not exceed the 45% of the total monthly household income.

The application for FHA home mortgage in Louisiana is quite lengthy because the government needs to be assured that the borrowers have existing funds to repay the loan. Thus, applicants are required to submit pertinent information such as their residential addresses for the past two years if the principal borrower has resided in more than one house. Records of income tax return or W-2s must also be submitted for the last 24 months. Applicants who have trouble with their missing tax return forms will have to coordinate with their previous employers or get replacements from the IR office. However, FHA home mortgage is not exclusive to people in the workforce because they also accommodate applications from veterans. They just have to submit the DD Form 214 along with the duly accomplished FHA application form and the agency will assess which limit is most suitable according to the veteran`s pension.

Before being entitled to an FHA loan, the applicant is required to settle a down payment of 3.5% of the total amount of mortgage limit approved. On top of that, one should expect that there are other fees connected to the total amount of amortization aside from the principal and interest rate. These fees are reasonable and may come in form of appraisal fees, inspection fees, credit report fees, documentation fees among others. These charges will be collected independently and should not be regarded as inclusions to the total cost of the housing.