What is an FHA home loan?

• FHA stands for Federal Housing Administration. The program has been in place since the 1930's
• FHA's goal is to help stimulate the housing market by making home loans accessible and affordable
• An FHA loan is mortgage backed by the Federal Government
What makes an FHA loan attractive?
• Has low down payment options
• A home loan that is less restrictive to qualify for versus a Conventional loan
• Accepts credit scores as low as 620 per current guidelines (check with our professional licensed mortgage loan officer)
• Can go higher DTI (debt to income ratios)

Who can qualify for FHA loans?

• FHA loans have traditionally helped first-time buyers, the elderly, military families, disabled or lower-income families
• Borrowers that are not currently in an FHA loan that meet the qualifications can also qualify for an FHA mortgage
• Most anyone can qualify (for primary residence only)
• Check with our professional FHA mortgage loan specialists to see if you qualify

How do I qualify for an FHA loan?

• Credit history of Borrowers obtaining an FHA loan must be credit worthy with a minimum credit score of 620.
• If prior Bankruptcy has to be 2 years out with reestablished credit and 3 years out of a foreclosure
• Meet debt to income ratios to see qualifying loan amount (minimum payment debt plus total monthly mortgage payment divided by gross monthly income)
• Have seasoned assets in bank account for down payment, and closing costs (check with your FHA mortgage specialist)

What are advantages of obtaining an FHA Loan?

• FHA requires a minimum down payment of 3.5% on the purchase price of the home loan
• FHA allows use of gift funds (money gifted from a family member or non-profit organization) for down payments and closing costs
• FHA rates are usually lower than conventional mortgage loan rates

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