Posted by Marcello on March 06, 2002 at 01:50:01:
All you need to do is call up a lender and ask if they do FHA loans. If they do, they will run some quick numbers for you. To get preapproved, you will need to supply income statements (tax retuens and pay stubs) and have your credit checked. They also will need to verify that you have a certain amount of liquid assets. To do this, all you need to show is a current bank balance or liquid investments. Once they have all this information, they will take about a week or so and will come back with an amount that you qualify for. Obviously, the more you make and the better your credit the more you will be approved for. You will also need to show that you have enough cash to cover the down payment (3 percent) and closing costs. Keep in mind, with FHA financing, they tack on a few extra things at closing that you may not expect. However, you may be able to have the seller cover these costs and just account for it in the loan, but regardless, they need to know you have the cash. Any FHA lender will be able to walk you through the process. You can get FHA financing for 1 to 4 units only.
Basically, I was approved for a