When you’re looking to finance a property, there are many different types of loans you can pursue. It’s important to understand your different lending options, so you pursue an option that’s the best fit for you.
Especially if you are concerned for your income level or credit score, it’s important to know that there are many different kinds of loans which may be suitable for you, and which may allow you to successfully finance your home. For example, FHA loans, or Federal Housing Administration insured loans, are an excellent option that you may not be aware of.
Jacques Poujade, a real estate investing professional, is an expert when it comes to the lending industry. Poujade is currently a managing partner at LendPlus, and a direct lender based in Aliso Viejo, California.
We sat down with Poujade, to talk about different lending options, and especially FHA loans, and how to qualify for an FHA loan.
Jacques, what makes you an expert in real estate and real estate investing?
I’ve been working in these industries for decades, and I’ve seen a lot over that time. I have vast experiences which span different companies and different sectors of these industries. My professional goal now is to make sure that every borrower is able to finance the perfect 2property and reach their version of the American Dream.
As for my educational background, I obtained a Master’s Degree in Finance from McGill University and a Bachelor’s Degree in Commerce from Concordia University, Loyola Campus.
Why do you see mortgage solutions are being so crucial to the American Dream?
There are a lot of potential barriers to property ownership, which can really inhibit someone from achieving their dreams. I believe that these rights should be available to every American, and that the trick to achieving these dreams is having the proper lender. I think many borrowers don’t realize that having your lender in your corner can be a make or break difference.
Why is now a good time to finance a property?
Mortgage rates are hovering around record lows, and they’ve been there for a while. This is due in part to the COVID-19 pandemic. As we know, this pandemic has been challenging for many people economically. But if you’re in a position to borrow, it’s actually a great time to finance a property. These kinds of mortgage rates could save you thousands of dollars during the lifetime of your loan.
So you’re an expert in alternative lending solutions. Tell us about FHA loans.
FHA stands for Federal Housing Administration loans. You still get your loan from a lender, but they’re backed but the Federal Housing Administration. These loans are designed for Americans with lower incomes, as they typically require lower down payments, and you can be approved with a lower credit score.
They can be great for a first-time borrower, and it’s even possible to get them if you have certain types of debts. They do come with their limits, like you need to pay mortgage insurance premiums on the loans, so it’s important to do your research to see if they’re the type that’s right for you.
How do you qualify for an FHA loan?
You have to verify your source of income, and show that you can afford that down payment, even though it’s much lower than a traditional down payment. If you have any debts, you have to show you can pay those off as well typically. Your credit score usually has to be above 580, and your loan has to be within a certain limit.
If you’re interested in pursuing alternative lending options, be sure to check out our options at LendPlus. Our goal is to help people find a lending solution that works for them, and we’re proud of the work that we do.