The Benefits of FHA Loans
FHA Loans Help You Achieve Homeownership Dreams
Homeownership is an essential piece of the American Dream, and the FHA (Federal Housing Administration) backs mortgages so prospective homeowners without the capital to fund a mortgage can achieve that dream.
Benefits of FHA Loans
An FHA loan is federally insured, and qualifying is generally easier. Increased flexibility in household income requirements, payment ratios, and credit scores make FHA loans popular for first-time homebuyers.
Interest rates for FHA insured mortgages can be lower than conventional loans. With government backing, FHA loans are available to borrowers with lower credit scores than required by conventional loans. FHA loans also can fund other mortgage options including reverse mortgages*, streamline refinance rehab loans, and more.
Low down payment
- FHA mortgages allow homebuyers to pay as low as a 3.5% down payment.
Flexible credit qualifications
- You are eligible for an FHA loan with a credit score of 580 or higher.
- Low down payment requirements for 1-2 unit properties.
- Non-occupant co-borrowers may be on the loan; helping with higher debt ratios.
- 100% of the down payment can be from gift funds.
- The seller can pay closing costs up to 6%.
- Easier credit and qualifying requirements.
- Lower reserve requirements for the borrower.
- Qualification with less than two-year rental history.
If you think you may qualify for an FHA home loan, contact us today! We’re always here to help!