An FHA loan is a government backed loan insured by the Federal Housing Administration, which allows lenders more flexibility in qualifying a borrower. FHA loans have lower credit score requirements, with our lenders offering loans to qualified borrowers with as little as a 580 score--compared to the minimum requirement of 620 for conventional loans. Under an FHA loan, a borrower can obtain a home with as little as 3.5% down on a 1-4 unit residential property.
FHA loans are amortized over 15 or 30 year options with fixed interest rates. Regardless of down payment or loan-to-value (how much your loan amount is in relation to the property value expressed as a percentage), FHA loans require borrowers to pay a one-time Upfront Mortgage Insurance Premium and monthly mortgage insurance. The monthly mortgage insurance will be cancelled after year 11 of your FHA loan, however many buyers use an FHA loan to obtain a property, and once they appreciate in value or acquire a higher credit score, refinance into a conventional mortgage.
3.5% Down Payment
FHA loans are obtainable with a down payment as little as 3.5%.
Flexible Lending Requirements
FHA loans have higher debt-to-income ratio requirements, which means it may be easier to qualify for than other loan types
Credit Scores As Low As 580
Like similar government-backed loans, an FHA loan is available with less than perfect scores. We have FHA programs available for borrowers with credit scores as low as 580.
