An affordable loan option for first-time homebuyers, borrowers with lower credit scores, or those looking for a low down payment.
An FHA loan can be an affordable way to purchase a home. These types of loans are perfect for homebuyers who are looking for a lower down payment or have less than perfect credit. Since FHA loans are insured by the government, the requirements are less strict than a conventional loan. There are several types of FHA loans that can help those trying to purchase a home.
Traditional FHA Loans: These loans facilitate the purchase of a primary residence with a fixed-rate or adjustable-rate term.
FHA Reverse Mortgage: Otherwise known as a Home Equity Conversion Mortgage (HECM), this loan helps borrowers 62 and older tap into their home equity. It can also help with a home purchase.
FHA Condominium Loans: For those looking to purchase a unit in a condo building.
FHA 203k Loan: This loan enables homebuyers to finance a purchase and renovation for a new home or home improvements on an existing home.
FHA Manufactured Home Loans: For those looking to purchase a manufactured home that passes HUD requirements.
FHA Loan FeaturesHere's why an FHA Loan may be right for you.
- Easier to qualify than a conventional loan
- Down payment as low as 3.5%
- Less out-of-pocket costs overall
- Liberal credit requirements with FICO scores as low as 620 accepted
- Upfront mortgage insurance can be financed into the loan or paid in cash
Find answers to some of the most common questions about FHA Loans.
FHA loans are available for first-time and repeat buyers as long as the borrower meets all of the FHA’s requirements. However, you may frequently see FHA loans recommended to first-time buyers because of it’s low down payment requirements.
Interest rates on an FHA loan are typically lower than a comparable conventional mortgage. You can find out today’s interest rates by calling us at 866-312-4370.
Mortgage insurance allows us to offer FHA loan programs with low interest rates, flexible credit scores, and low down payment requirements. With an FHA loan, borrowers are required to pay a mortgage insurance premium (MIP) in two parts. The first is paid at closing, which is called the upfront MIP. The upfront MIP can be bundled into the loan or paid in out-of-pocket. The other is Annual MIP, which will be charged monthly. Your loan officer can discuss this further and estimate what you would pay in MIP charges.