With a variety of loan types and flexible terms, FHA loans give you flexibility to meet your needs.
Popular Loans with Less Requirements
FHA loans are insured by the Federal Housing Authority and are perfect for first-time home buyers or if your credit score has taken some lumps.
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The FHA Loan Process
After you’ve filled out our Apply Now form, we’ll lead you through this four-step process.
1. Review
We will review your application and then contact you to discuss the next steps in the loan process.
2. Pre-Approve
Once pre-approved, we’ll help you select the loan that meets your needs. We will then order an appraisal and send initial loan disclosures.
3. Verify & Approve
You provide us with documentation of the information you submitted in your application. We’ll verify and approve your loan for closing.
4. Close
After signing the closing documents, we’ll coordinate the loan closing and fund your loan. It’s just that simple!
FHA Loans
What is a Federal Housing Administration Loan?
An FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA). Designed for low-to-moderate income borrowers, FHA loans require a lower minimum down payments and credit scores than many conventional loans.
As of 2019, you can borrow up to 96.5% of the value of a home with an FHA loan (meaning you’ll need to make a down payment of only 3.5%). You’ll need a credit score of at least 580 to qualify. If your credit score falls between 500 and 579, you can still get an FHA loan provided you can make a 10% down payment. With FHA loans, your down payment can come from savings, a financial gift from a family member or a grant for down-payment assistance.
All these factors make FHA loans popular with first-time homebuyers.
How It Works
How Federal Housing Administration loans work?
FHA loans are available with different terms, so you can choose the length of the mortgage that works for you. Think you’ll refinance or move within a few years? An FHA adjustable rate mortgage comes with a low fixed rate for the first five years.
- You get an FHA loan from an FHA-approved mortgage lender.
- The loan is insured by the Federal Housing Administration.
- Because of that insurance, the credit and income requirements for an FHA loan are more lenient.
- To help fund the FHA program, in most cases you’ll pay mortgage insurance, which is added on to your monthly payment.
- The home you want to buy will have to meet the FHA’s minimum property standards.
FHA Loan Requirements
Important FHA guidelines for borrowers.
The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created.
- FICO® score at least 580 = 3.5% down payment.
- FICO® score between 500 and 579 = 10% down payment.
- MIP (Mortgage Insurance Premium ) is required.
- Debt-to-Income Ratio < 43%.
- The home must be the borrower’s primary residence.
- Borrower must have steady income and proof of employment.
