FHA Mortgage Loans
Designed for homebuyers with a low-to-moderate income, FHA loans are a great option for many people. Qualified homebuyers benefit from a lower down payment requirement (as low as 3.5%), lower monthly premiums, and lower closing costs. It’s an attractive loan for first-time homebuyers or repeat homebuyers with low income or credit.
Understanding FHA Mortgages
A down payment on an FHA loan can be as low as 3.5% with a qualifying credit score of 580 or higher. Otherwise, a 10% down payment is required which is still much lower than a conventional loan.
FHA loans offer some of the lowest credit requirements of any loan. Mitch's preferred lender allows borrowers to have a credit score as low as 580.
A higher debt-to-income (DTI) ratio is allowed with an FHA loan. Borrowers can have monthly debt payments costing up to 50% of their income.
An FHA loan requires mortgage insurance of any borrower who puts a 10% down payment or lower. This insurance cannot be canceled, but it is often lower than traditional private mortgage insurance.
Questions And Answers About FHA Loans
What is an FHA loan?
The Federal Housing Administration (FHA) offers loans that they back/insure to protect investors. Because of this backing, FHA loans give homebuyers that might not otherwise qualify, an opportunity to borrow money to purchase a home.
Do I have to make a certain amount of money to qualify for an FHA loan?
There are no specific minimum or maximum income limits to qualify for an FHA loan.
Do FHA home loans require a down payment?
Yes. FHA backed loans require as little as 3.5% down payment. Your down payment can come from gifted funds.
What's the minimum credit score I can have to qualify for an FHA loan?
Of course, the better your credit score, the more likely you can get pre-approved for a loan. The minimum credit score is 580 to qualify for an FHA loan with Mitch's preferred lender