What is an FHA Loan?
A first-time homebuyer favorite thanks to the liberal income and credit-score requirements. Nobody’s perfect, but you can still get your dream home.
The FHA makes home ownership achievable.
Do you need some flexibility with qualifications and credit requirements? Want to put as little as 3.5% down on your home? Then look no further! This loan is insured by the Federal Housing Administration (FHA) and was originally aimed at first-time home buyers who had less-than-perfect credit. Although this is still a great option for first-time homebuyers, the FHA is open to a wider audience of buyers and has even become a popular refinancing option. Keep reading to see if this could be the loan for you.
Benefits of the FHA home loan:
More liberal credit requirements than a conventional loan.
Don’t have enough for a traditional down payment? No problem – FHA allows 3.5% down.
An FHA is a great loan for people who don’t have deep bank accounts.
Fixed and adjustable loan rates are possible. You decide what you want.
The down payment may be covered as a gift from your parents or other approved source. Add that to your next birthday wish list!
You may be able to finance your mortgage insurance premium.
Let’s dig a little deeper – who is eligible for the FHA home loan:
Before getting into the nitty-gritty, it’s important to know who the FHA home loan is best for:
- You’re a first-time home buyer.
- Your credit score is less-than perfect.
- You have some savings set aside to cover the extra costs, including mortgage insurance premiums and mortgage insurance. Don’t worry, we will give you all of this information upfront, and you may be able to finance some of it.
- You don’t have enough savings to put 20% down on your home.
- Still not sure if you qualify? Call a mortgage advisor today at 1-844-77-vLoan to help match you up with your perfect fit.
Requirements and facts for the FHA home loan:
- There are more liberal income requirements than a conventional loan, so it doesn’t matter if you’re just getting started in the working world or if you’re rolling in the dough.
- We understand not every buyer has a perfect credit score.
- Possibility to refinance up to 97.75% of your home’s value.
- Even though we stated this earlier, we’re going to again: The FHA home loan gives you the ability to put as little as 3.5% down! Take advantage, homebuyers!
- You can prepay your mortgage without penalties.
The nitty-gritty about FHA loans:
- 15, 20, 25 and 30 year terms are available for fixed-rate options.
- 5-year adjustable rate mortgages are available.