What is an FHA Loan?
FHA loans are an attractive option, especially for first-time homeowners because it is insured by the Federal Housing Administration (FHA). Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.
What are the Benefits of FHA Loans?
● Low Down Payment. Most FHA loans only require a 3.5% down payment.
● Credit Scores from 580 are allowed for fixed-rate loans.
● Both fixed-rate and adjustable-rate mortgages (ARMs) are offered.
● You may finance a single-family home, 2-4 unit property, modular home, condominium or a Planned Unit Development (PUD) property.
What are the Income Requirements?
FHA allows for up to 55% of your total Debt-to-Income. Meaning that your total Mortgage Payment (principle, interest, taxes, insurance, &/or hoa) when combined with your total monthly Liabilities (auto financing, alimony, child –support, additional mortgages, and installment loans), is not more than fifty-five percent of your gross monthly income.
What are FHA Loan Limits?
FHA loan limits vary from county to county, state to state, and even by property type.
Click Here to find what the FHA Loan Limit is in your specific area.
What are the Credit Score Requirements for an FHA Loan?
Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
FHA-qualified lenders will use a case-by-case basis to determine an applicants’ credit worthiness.
Get Pre-Approved for an FHA Loan Today!
Michael O’Connor prides himself on offering some of the most competitive rates nationwide while making the loan process simple, straightforward and fast for borrowers seeking a mortgage. Although I am located in Southern California, I have the ability to lend in the following states: California, Colorado, Florida, Hawaii, Texas, and Washington to make myself as accessible as possible for my clients. Click here and get pre-approved for an FHA Loan today!