FHA Mortgage Loans
Our Rates are Low and Our Process is Quick & Painless
FHA Mortgage Loans
FHA mortgage loans are government-backed loans that are insured by the Federal Housing Administration (FHA). These loans are designed to help homebuyers with lower credit scores and smaller down payments to qualify for homeownership.
What is a FHA Mortgage Loan?
An FHA mortgage loan is a type of government-backed mortgage that is insured by the Federal Housing Administration (FHA). This type of loan is designed to help homebuyers with lower credit scores and smaller down payments to qualify for homeownership by offering more flexible qualification requirements. FHA loans are issued by FHA-approved lenders, such as banks and mortgage companies, and are popular among first-time homebuyers and those with limited savings for a down payment.
Frequently Asked Questions:
What are the benefits of a FHA loan?
One of the biggest benefits is the lower downpayment. FHA loans require a minimum down payment of just 3.5% of the purchase price, which is much lower than the typical 20% down payment required for a conventional loan. They are also more flexible with credit requirements. FHA loans are available to borrowers with lower credit scores than conventional loans, and may be an option for those with a credit score as low as 500 (although a higher score will be required to qualify for the minimum down payment). FHA loans allow borrowers to have a higher debt-to-income ratio than conventional loans, which may make it easier for some borrowers to qualify.
FHA loans have limits on the amount of closing costs that lenders can charge borrowers, which can make them a more affordable option for homebuyers. They are assumable loans, which means that if you sell your home, the buyer can take over your FHA loan, assuming they meet the qualification requirements.
What is the loan process?
Here's how our home loan process works:
- Complete our FHA Mortgage Qualifier
- Receive personalized loan option
- Compare mortgage interest rates and terms
- Select the offer tailored to your needs!
What are the key features?
- Fixed Rates
- Adjustable Rates (ARM)
- Conforming Loans
- Jumbo & Super Jumbo Loans
- FHA, VA, & USDA Loans
- Terms from 5 to 30 Years
Do I qualify?
Typically, an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a low-down payment, and you can have a credit score as low as 500. An FHA down payment of 3.5% is required. Borrowers who cannot afford a traditional down payment of 20% or can’t get approved for private mortgage insurance should look into FHA loans.
What is the difference between a FHA loan and a conventional loan?
The main difference between FHA and conventional loans is that FHA loans are government-backed and insured by the Federal Housing Administration, while conventional loans are not. FHA loans are designed to help homebuyers with lower credit scores and smaller down payments to qualify for homeownership, while conventional loans typically require higher credit scores and larger down payments.
How much can I borrow with a conventional mortgage loan?
The amount you can borrow with an FHA loan depends on several factors, including the location of the property you plan to purchase, your credit score, and your debt-to-income ratio. To budge how much you can afford, use our free online mortgage calculator!