Our Loan Officers understand the benefits of FHA loans

What Is An FHA Loan?

FHA loans are backed by the government (Federal Housing Administration). They’re often easier to get because they allow higher debt and you can put down as little as 3.5% of the home’s cost. You don’t need a high credit score either. But with FHA loans, you have to pay for insurance upfront and keep paying for it as long as you have the loan.
FHA Loan

Top Four Reasons To Get An FHA Loan

FHA loans are perfect for a borrower who doesn’t perfectly fit into the conventional loan criteria. Here are the top four reasons why:

Smaller Down Payment

You can apply for an FHA loan with as little as 3.5% down and the money for your down payment does not have to be your own.

Ability To Transfer

FHA loans are assumable, which means a qualified buyer may apply to assume your loan.

Flexible Credit Guidelines

Since FHA underwriting guidelines are more flexible, you can be approved for an FHA loan with a lower credit score.

Low Interest Rates

FHA loans tend to have lower interest rates than conventional loans for those with a lower credit score.

FHA Loan Qualification Requirements

In order to qualify for an FHA loan, you will need:

Reasonable Credit

FHA rates are generally lower than conventional loans for credit scores under 680. The lowest credit score FHA will permit with the minimum down payment of 3.5% is a 580.

A Down Payment

An FHA loan requires a minimum down payment of 3.5%. FHA loans allow your down payment to be a gift from a family member or down payment assistance funds.

Documented Income

In order to qualify for an FHA Loan you must prove your income. You will need to provide your Mortgage Consultant with pay stubs, W-2s, and, in certain situations, tax returns.

Other Qualification Requirements

FHA loans can only be obtained at your primary residence. Since an FHA loan is a government-insured loan, you also may not have any delinquent federal debt, such as unpaid taxes or student loans.