An Excellent Option For First-Time Buyers
Our borrowers have the option to take advantage of the Federal Housing Administration (FHA) loan. This loan product is often a game-changer for prospective homeowners who otherwise might struggle to purchase a home. While great for first time home buyers, it is beneficial for other buyers as well. FHA offers the combination of low down payment, credit and income flexibility, along with an affordable monthly payment.
Benefits of an FHA Loan
Learn why so many choose FHA Loans.
Low Down Payment
FHA loans offer buyers a low down payment as well as flexibility in the source of down money including gift funds, down payment assistance, and gift of equity.
Qualification Flexibility
Long known for flexible credit guidelines, FHA also allows higher qualifying debt to income ratios, co signors that do not have to live in the home, seller assistance towards buyer closing costs, and more.
Available for Refinancing
FHA is for current homeowners as well, offering cash out refinancing up to 85% of appraised value for areas such as debt consolidation and home improvements.
FHA vs. Conventional
The choice often comes down to these two. FHA compares well for low down payment, great interest rates, lower credit scores, and higher debt to income ratios.
Your home buying journey begins here.
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Topics covered include:
- Saving for a Down Payment
- Get a Mortgage Pre-Approval
- Researching Loan Programs
- Loan Process Steps
- Loan Process Do’s and Don’ts
Frequently Asked Questions
1. How does FHA treat student loan debt?
FHA is very flexible for borrowers with higher debt to income ratios, sometimes exceeding 55%. For borrowers with income-based repayment or deferred student loans, 1% of the balance or fully amortized payment is used for qualification.
2. Does FHA mortgage insurance cancel at 80%?
Unlike, conventional loans FHA monthly mortgage insurance does not cancel at 80% of the value. Options include decreasing the life of loan PMI or cancellation after 11 years.
3. Why are FHA loans a popular choice?
FHA’s popularity stems from this government program’s strong commitment to making it easier for more borrowers to qualify for a home loan with such benefits mentioned above.
4. What is your FHA minimum credit score?
It is possible to use the FHA minimum 3.5% down payment option with as little as a 580 credit score, which is not available in many other mortgage options.
You’re in the driver’s seat, we’re here to help.
Lending Redefined means you can get started on your schedule, in the way that works best for you.
Three great options for starting: