An FHA loan makes buying a home with little money saved or a less-than perfect credit a reality.
Let us put you in contact with a home loan expert to help you get pre-approved today.
About FHA Loans
An FHA loan is a home loan the Federal Housing Administration insures. FHA loans require a smaller a down payment and lower closing costs and allow relaxed lending standards to help homeowners who don’t qualify for a conventional loan.
FHA loans allow a down payment of as little as 3.5% on a mortgage. This can make it possible for lower- and middle-income borrowers to buy a house when they don’t qualify for a conventional loan — which has stricter requirements, including a higher credit score and bigger down payment.
How do I qualify?
FHA loans are a good option for first-time homebuyers who may not have saved enough for a large down payment. Even borrowers who have suffered from bankruptcy or foreclosures may qualify for an FHA-backed mortgage.
Some other eligibility requirements include...
- Credit Score. The minimum credit score requirement is typically at least 580 depending on the the wholesaler that is used. However, there are options for those with credit scores between 500 and 579.
- You cannot have either a Chapter 7, or Chapter 13 bankruptcy within the last 2 years.
- A down payment of at least 3.5% is usually needed for an FHA Loan, however, there are down payment assistance products and grants that may be available to help with the burden of down payment.