It is true that it may be more difficult or impossible for some borrowers to get a home loan today; but for many borrowers, it is just as easy to get a home mortgage loan today as in the past. In fact, mortgage rates are low, the process is simple and the market is competitive.

Two types of home mortgage loans that are being written on a regular basis today, FHA and Conventional. Deciding which home loan is right in each case requires consideration of two factors, product guidelines and the true cost of each loan.

The factors that determine qualification for an FHA loan today are Credit Score, LTV (Loan to Value Ratio), Documentation and Loan Amount. If the borrower’s credit score is above 580, the LTV is at or below 95%, income can be documented and the loan amount is within FHA county limits, a home loan is attainable. Of course there are other factors to be considered, but those factors are no different than in the past.

The factors that determine eligibility for a conventional home mortgage loan are similar, but more stringent. In other words, you need a higher credit score and lower LTV. However, conventional loan limits in most counties are higher than FHA limits and the true cost of a conventional home mortgage loan is less than an FHA loan.

On the other hand, it is difficult for borrowers to get loans in today’s environment when income cannot be documented, credit scores are below 580, requested loan amounts are higher than the FHA and Conventional limits, and/or and the LTV is high.

Many borrowers today are facing ARM resets, meaning that their Adjustable Rate Mortgage is nearing the end of the fixed period and the interest rate resets to the pre-determined Index plus margin. For many homeowners, this reset can cause a dramatic increase to their monthly mortgage payment. But borrowers who qualify for a Conventional or FHA loan can refinance today at a low fixed rate and avoid a large increase in payment.

Those who do not currently qualify for either type of loan may be able to negotiate a loan modification with their current lender. To apply for a loan modification, borrowers should first apply for a conventional or FHA loan. If denied financing, they should get a copy of their appraisal and denial notice and contact their existing loan servicer and ask if they are offering loan modifications for holders of adjustable rate mortgages. In many cases the lender will offer some relief to keep borrowers from going delinquent on their loans.

There are several factors that should be considered today when shopping for a home loan. First, find an intelligent, knowledgeable loan professional to assist in the loan process. Second, find a mortgage company that offers both conventional and FHA loans. Third, research home values in your area.

Today, it is more important than ever to work with an intelligent, knowledgeable mortgage banker with the skills and industry experience to guide you through the process and make it a simple and pleasurable experience with a positive outcome. An experienced loan officer may have the knowledge to get the loan approved and closed quickly, where a less experienced loan officer may struggle to get an approval for the same borrower.

All mortgage companies do not offer all types of loans. Many home mortgage lenders have only recently received federal approval to write FHA loans. A less experienced mortgage lender that does not have the ability to underwrite its own FHA loans may be less likely to obtain approval on this type of loan. It is important to do some research before selecting a mortgage company. Start by Google’ing the company, and find additional information on home mortgage lenders on HUD’s website.