Numerous lenders offering FHA, Conventional, and VA Loans are available in the market. Some lenders apply complex terms, and others approve loans on soft terms. The FHA Loan stands best in the market because its financing is higher, terms and conditions are softer, and the approval time is also good. Finding a lender who applies soft terms is easy, but we have one lender to reveal offers FHA Loans on soft terms.
This article will review a famous FHA Loan Lender named Bethpage Federal Credit Union. This Bethpage Federal Credit Union’s terms and conditions are softer than other lenders. You can quickly approve your loan if you have completed the required terms and conditions. Bethpage’s FHA Loan Lending process is faster, and you’ll love working with them. Let us reveal the requirements this Bethpage demands when you try borrowing FHA Loans from them.
Bethpage Federal Credit Union’s FHA Loan Requirements and Benefits
We’ll mention the requirements and the comparison with other lenders. These requirements are also mentioned on Bethpage’s official website. You can also read them from there, but our explanation will highlight everything. You will never need further details after reading our explanation.
Fixed Interest Rates
The first benefit we’d like to add is the fixed interest rate. FHA Loans have higher interest rates, but a borrower gets satisfied when he knows about paying the fixed interest. Borrowers don’t like Adjustable Rate Mortgages, and Bethpage’s FHA Loan doesn’t disappoint a borrower by this means. Bethpage has mentioned this on their website’s official page. They don’t take variable interest rates on FHA Loans. So this benefit proves Bethpage’s worth.
Approval of FHA Loan at Low Credit Scores
The 2nd benefit you earn through Bethpage’s FHA Loan program is the approval of your FHA Loan on lower credit scores. You must understand this pattern because it confuses many borrowers. A borrower must show at least 500 credit scores to mark himself on the approval list. You can expect a green signal on 500 credit scores, but there is one technical figure which you have to understand.
Bethpage’s team will ask you to pay 10% down when you display 500 credit scores. That’s the first point. The 2nd point is to fulfill Bethpage’s demand. Bethpage asks for 580 credit scores, and the down payment necessary to pay is 3.5%. You must pay 3.5% down on 580 credit scores, but the story remains the same. Bethpage will ask you to pay PMI (Private Mortgage Insurance) when you pay 3.5%. This PMI will be continued until your home equity reaches 10%. So paying 10% down and getting approval on 500 credit scores is recommended. Your time will also be saved because you won’t struggle hard to earn 580 credit scores. So this is the thing that you must keep in mind before applying for Bethpage’s FHA Loan.
Loan Terms
Loan Terms mean loan tenure. Bethpage gives 15 and 30 years on FHA Loans. Its Conventional Loan tenure can be 10, 15, 20, and 30 years, but 2 numbers are given on FHA Loans, 15 years and 30 years. You can clear the loan in 15 or 30 years. Bethpage gives no middle way. Clearing the loan in 15 years is possible when your income is stable. You can take 30 years, but we don’t recommend this because 30 years are 3 decades, which is a very long time. This decision is suitable to take after looking at your monthly income. The lender must continue to pay for this loan for 15 years when your income permits you, or else, take this loan for 3 decades, but getting stuck for 30 years isn’t recommended.
DTI Score
Bethpage hasn’t mentioned this number, but this score’s completion is necessary. Bethpage’s team will ask you to input your DTI score in its application form. You must achieve 37-43% if you don’t want to get disappointed because 43% is the last number. You can improve this score using a Real Estate calculator, which can be downloaded from ATOZ APK. Use that calculator to count your DTI Score. Try improving it with the suggestions provided by that calculator. Follow those suggestions and take your DTI Score below 43%, then apply for FHA Loan.
Property Type
This one is also essential. FHA Loans are used to purchase residential properties. You can’t borrow a loan to buy investment properties. If you already have a residential property and want to maintain it, then Bethpage might help with its FHA Loan Type. But Bethpage already has given a red signal to those borrowers who expect to buy investment properties through FHA Loans. You can’t qualify for this loan when you have kept investment properties in mind.
If you don’t know the difference between residential and investment property, you must leave the selection process to any Skip Tracing Firm like Lert Skip Tracing. These firms have contacts with homeowners who have residential and commercial properties. Your FHA Loan will be approved if you find the qualifier through these firms because they know the perfect targets.
These were the 5 smooth requirements you must fulfill to get a green signal from Bethpage. There is one question frequently asked by borrowers.
Can I Refinance a Previously Borrowed FHA Loan?
Many people ask this question. So the answer is simple.
The refinancing process is dependent on the lender’s will. Some lenders will approve your refinancing request after rechecking your credit scores, DTI, down payments, and interest rates. Bethpage also gives the green signal to those borrowers who want to refinance their FHA Loans. So the answer with Bethpage is yes, but if your lender is someone else, you must read his refinancing details. You should only apply for this when your lender is ready to refinance. Some lenders have wholly refused this, but Bethpage provides this refinancing opportunity.
Final Words
So that was the complete review of Bethpage’s FHA Loan Program. We’ve mentioned the requirements that Bethpage asks for. We’ve also mentioned the necessary precautions you must take before applying for the FHA Loan on Bethpage’s website. Drop a comment if anything is still left for discussion. Until then, take care and enjoy home buying. We’ll discuss a new lender in our upcoming article. So be ready and give a thumbs up if you have liked reading this review.
