FHA Loans

FHA LOANS

FHA(Federal Housing Administration) is a government loan program that offers flexible underwriting guidelines including lower or no credit scores. Because of the flexible credit score requirements and debt-to-income ratios, an FHA loan may be a good fit for borrowers who don’t have perfect credit or high monthly debts that are impacting the debt-to-income ratio. Pick from a 30/15 year fixed or apply for a government-regulated ARM.

Another benefit of FHA is the competitive mortgage rates. Along with VA loans, FHA rates are typically more competitive than conventional loans, especially for borrowers with lower credit scores. Below, you will find some important FHA benefits that may help your situation. Please call or email us if you have any further questions.

FHA residential mortgage

PURCHASE Highlights & Benefits

  • Credit Score as low as 580 + FHA allows higher debt-to-income ratios.
  • Great loan for borrowers with average or good credit scores and small down payment.
  • Gift Funds for down payment and/or closing costs from family or employer is ok.
  • Purchase a home with as little as 2.25% down payment. This will fluctuate depending on loan amount but most commonly it’s 3.5%. Down payment assistance is allowed.
  • 6% seller concessions allowed to cover closing costs, prepaids, and points.
  • Only 2 years out of Chapter 7 bankruptcy and 3 years out of foreclosure. Small medical and non-medical collections are okay.
  • Permanent resident alien status is ok. Work visa status ok as long as the work visa has not expired. DACA applicants are eligible as well.
  • Use to purchase Single Family Residence, Condos, Townhouse, or Manufactured homes.
  • Condos must be FHA approved. 

REFINANCE Highlights & Benefits

  • Pull cash-out up to 80% of your home’s value. Loan can be used to pay debt such as credit cards or just get cash at closing. Learn more about cash-out loans.
  • Streamline current FHA loan. Refinance a current FHA loan without income documentation or appraisal.
  • Credit scores as low as 580. **Credit score not required on streamlines**
  • Small collections are okay.
  • No income restrictions and high debt-to-income ratios allowed.

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