How to get pre approved for a fha loan

Question

in November I will have 2 years of steady work so, I'm gonna find a fha lender but I live in ny and plan to invest in New Jersey. So will it be ok to go to a lender in ny. Also can someone run me thru the process of getting pre approved.

Richard Jahnle · Answer

@Chris Breezy If you go to a lender in New York looking to invest in New Jersey, you need to make sure that the lender and the loan originator you are working with are also licensed to originate loans in NJ. There's a good chance they will be since New Jersey is a neighboring state, but you just need to ask the lender.

Also if you are looking to use an FHA loan, you need to live in the house for at least a year, so if you are still going to be living in NY, you can't use an FHA loan to buy an investment property in NJ, it has to be owner-occupied.

Chris Breezy · Answer

@Jonathan Greene thank you for that , what about credit history ?  I kno my credit score is near perfect but I, not sure if I have enough credit history . Only a year and half spending about 100-200 a month

Jonathan Greene · Answer

@Chris Breezy - that could be an issue, but a good credit score with less history is much better than a checkered one!

Jonathan Greene · Answer

@Chris Breezy - It seems you want to know what you need to have on hand to get started. Here is a list of general items you may need from one of my verified lenders:

Personal

Driver's license or passport photo

Social Security card or Permanent Resident Alien Card

Divorce decree (if applicable)

Employment/Income

Federal income tax returns for 2015 & 2016. Provide complete federal return.

W-2 and/or 1099 forms for 2015 & 2016.

Pay stubs for the most recent 30 days with Year-To-Date (YTD) Income showing.

Proof of additional income, such as Social Security benefits, child support, or alimony (if applicable)

Letter From CPA confirming you have been self employed for at least the last 2 years (if self-employed)

Assets

Bank statements for checking and savings accounts for the last two months (internet activity

printouts are not acceptable). Please provide all pages, even any "intentionally left blank" pages.

Statements for retirement funds and other investments for the last two months

Liabilities

Listing agreement or sales contract for current home pending Sale (if applicable)

Property/Misc

Sales contract (purchase only)

Copy of most recent Mortgage Statement for any and all properties owned

Proof of homeowners insurance for any and all properties owned

Name/phone number/& Email address for Attorney and Realtor (if applicable)

Chris Breezy · Answer

@Fasil Khan   My goal is househack, fulfill the owner occupant part of it then move back to my current residency for cash flow. Still researching areas but def in Bergen or Essex county

Fasil Khan · Answer

@Chris Congratulations, on taking the steps to purchase an investment property.

What is your goal with this NJ property and what locations are you looking in?

Harjeet Bhatti · Answer

FHA loan is for primary residence. If you are not  planning to live in that property that won't be option for you.

Upen Patel · Answer

@Chris Breezy You can't use the FHA loan to invest. FHA is an owner occupied loan. You can use it to buy a multi unit, but have to live in one of the units.

Assuming you are going to live in the property, you can work with a national lender or someone local that is properly licensed. There are lots of lenders out there, so make sure that you work with someone that is going to work with you, be responsive and help you through the process.

Richard Jahnle · Answer

@Chris Breezy - Also, the process of getting pre-approved involves the lender running your credit report, verifying your income and liabilities, and seeing if you have the cash on hand to cover downpayment/closing costs etc. Like @Jason Fike said, until you are pretty close to finding the right house, you may not want to get pre-approved since they will run a credit inquiry. If you want an idea of the price range that you will qualify for, you can ask a lender for a pre-qualification. It's just an estimate and isn't a guarantee that they can lend you that amount of money, but they can probably give a pretty good estimate of what you can qualify for.

How to get pre approved for a fha loan

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