To obtain an FHA loan you will need at least 3% of the purchase price as a down payment. Conventional loans require more!
If you are purchasing a HUD home that 3% may be used towards your closing costs rather than a down payment so you can get into the HUD home for even less money out of pocket.
FHA guidelines allow you to use 31% of your income for housing costs and 43% for housing costs plus other long term debt. FHA tells us that if you exceed these ratios there are a few options to still get you qualified –
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