What is a FHA Loan?
FHA loans are backed by the Federal Housing Administration; they protect the lender from financial risk as they allow for a riskier client to purchase or refinance. With higher allowances for debt to income and a lower threshold for credit scores, these loans are ideal for first time home buyers. Down payments can be as low as 3.5% but with all the positives there are some catches; FHA loans require an Upfront Funding Fee but that can be financed into the loan. In addition, there is a monthly mortgage insurance premium and, in some cases, can last the entirety of the loan.
Advantages: Lower credit score requirements, scores can be as low as 500 but will require at least 10% down. 580 and above will require 3.5% down. Allows for higher debt to income ratios. Programs: 203B, 203K (Renovation loan) and Streamlines.
Benefits of FHA Loan
FHA Loan Checklist
We offer the assistance you need to help find the best option for your mortgage needs. Whether you are consolidating your debt, refinancing your home, or buying your first house, we have the expertise to make it a fast, easy, and enjoyable process. Start your process now! Or call us at 888- 607-0404.
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