Did you know that the government insured FHA program for Connecticut homebuyers does not have income restrictions? You can make a million dollars a year and still qualify for the same interest rate and program that are generally associated with low income housing programs. The Housing and Urban Development created the national Federal Housing Authority to insure mortgages including Connecticut home loans against default so that mortgage lenders would offer lower interest rates to Connecticut first time homebuyers and Connecticut homeowners to promote home ownership all over the nation.
Many Connecticut residents who are saving to buy a home do not think that they can qualify for a low interest rate FHA mortgage because they make too much money. This is a common misconception that I address frequently and often with many first time home buyers who want to get the lowest rate possible. With FHA mortgages in Connecticut you must document your income and there is little to no flexibility such as the popular twelve months of bank statements that many self-employed borrowers use to qualify for programs.
The major challenge that many high income Connecticut homeowners or potential homebuyers have is that they are limited by the Connecticut FHA mortgage limits. For example in Fairfield County the mortgage limits are $362,790 for a single family which is well below the median home price in the highly coveted areas of Fairfield.
The guidelines that determine your Connecticut FHA eligibility are:
You must have verifiable income from your W2, paystubs and tax returns
You must maintain a low monthly outflow of cash for paying your mortgage and bills
You must have 3% to put down on a purchase from your savings, parents, relatives, 401k or down payment assistance program.
You must not exceed the maximum mortgage limits for the county that you are buying in.
Keep in mind that FHA is an insurance program that any mortgage lender can use to guarantee that the mortgage money that they lend you will have some type of safety net in case you default on the mortgage at any time.
A Connecticut FHA insured mortgage is the best mortgage program available for thousands of homebuyers who want to get a low thirty year fixed rate.