What is an FHA loan?
An FHA mortgage is insured by the Federal Housing Administration (FHA)
and is a popular option with first-time homebuyers. It was
specifically designed to help potential homebuyers get into a home
with less stress by providing lower down payment options and flexible
underwriting guidelines. FHA-approved lenders are able to offer these
benefits because borrowers with an FHA loan pay mortgage insurance,
which protects the lender in case the borrower defaults.
Can I qualify for an FHA home loan?
Because an FHA loan is government-insured, it has less stringent
qualifications and credit requirements compared to Conventional
financing. The minimum credit score depends on a variety of factors,
so be sure to check with your Loan Officer about your specific
situation. The FHA mortgage was originally created for first-time
homebuyers, but it is now open to a much wider audience. Under FHA
guidelines, if you have not owned a primary residence for at least
three years you can qualify as a first-time homebuyer! Qualifying
homeowners may be able to refinance their FHA loan and obtain a lower
rate with an FHA Streamline refinance.
How much is the down payment for an FHA mortgage?
A down payment as low as 3.5% is available through an FHA home loan.
This amount may even be covered through a gift from a family member or
by down payment assistance through state or local government programs.
Ask your Loan Officer for available options in your area. If you’re
not sure you can qualify for a mortgage, speaking to a loan officer
who specializes in FHA financing may be a great place to start. Get
pre-qualified now and we’ll review your current financial situation
and credit score to help you find the best option for you.
Understand the Impact of Your Credit
It's a common misconception that you need perfect credit to buy a
home. Whether you have good credit or have had a few bumps along the
way, we can help! Don't let a few bumps stand in your way - learn more
today and let us help!