FHA loans are designed to help more people qualify for a mortgage, even if they have less-than-perfect credit.
With a down payment as low as 3.5%, FHA loans make homeownership more accessible.
Borrowers can choose from various loan terms, including fixed and adjustable rates, to fit their financial situation.
If you sell your home, the FHA loan can be transferred to the new buyer, which can make your property more attractive.
An FHA loan is a mortgage backed by the Federal Housing Administration, designed to help homebuyers with less-than-perfect credit or smaller down payments qualify for a home loan. Borrowers can typically secure financing with more flexible credit and down payment options than conventional loans.
FHA loans come in several varieties, each designed to meet different needs:
Each type of FHA loan is geared toward different borrower needs. We can help you determine which one is right for you.
FHA loans may be available to borrowers with credit scores as low as 580, typically requiring a 3.5% down payment. Some loans programs may have stricter credit score or down payment requirements. Borrowers with credit scores between 500-579 may qualify with a 10% down payment, though this depends on the loan program and individual circumstances.
FHA loans offer lower down payment requirements, more lenient credit score qualifications, and the option to include closing costs in the loan. They also allow higher debt-to-income ratios than conventional loans, making homeownership accessible to more people. However, it’s important to check with us for specific eligibility criteria.
FHA loan limits vary by county and are based on local home prices. These limits are adjusted annually by the Federal Housing Administration. You can check FHA’s website or consult with us to find the loan limits for your area.
Yes, FHA loans require both an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP). We can provide the most current rates and options.
FHA loans are designed to be more forgiving for borrowers with credit challenges. Even if you've experienced bankruptcy or foreclosure, you may still qualify after a waiting period (typically 2-3 years). As an FHA-approved lender, we can consult with you and let you know what your options are.
Yes, FHA offers a 203(k) loan program, which is specifically for purchasing and renovating homes. This allows you to finance both the purchase price and the cost of repairs in one loan. Please check with us to find out if additional guidelines apply.
FHA loans offer more flexible credit and down payment options, but they do require mortgage insurance for the life of the loan. Conventional loans may offer better terms for borrowers with higher credit scores and larger down payments, as private mortgage insurance (PMI) can be removed when you reach 20% equity. At [Lender Company] we would be happy to help you compare both options.
Yes, the FHA Streamline Refinance program allows current FHA borrowers to refinance with reduced paperwork and no appraisal, potentially lowering your interest rate or monthly payments. However, some additional criteria may be required, so it's important to discuss your options with us first.
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