FHA loans are available for people with credit scores of 580 or higher and down payments as low as 3.5%. This makes FHA loans more accessible than other mortgages.
FHA home loans are a great option for people whose credit scores are 580 and higher, and who have at least a 3.5% down payment. These more lenient financial qualifications make FHA loans a popular option for first-time home buyers, though you don’t need to be a first-time buyer to qualify.
FHA mortgages are insured by the Federal Housing Administration (FHA).
The FHA protects lenders against defaults on payments. This makes it easier for you to qualify and allows lenders to offer lower interest rates.
To qualify for an FHA loan, you’ll need:
Your loan can’t exceed the loan amount limits in your area. The FHA’s limit for lower-cost areas is set at $420,680 in 2022. In high-cost areas, the limit for 2022 is $970,800. Look up the loan limits in your area.
|FHA 30 Year Fixed||3.5%||4.486%|
|FHA 25 Year Fixed||3.49%||4.615%|
|FHA 15 Year Fixed||3.125%||4.323%|
Credit score requirements are lower compared to other loans.
You could still qualify for an FHA loan if you’ve had a bankruptcy or other financial issues in the past.
FHA loans are available with fixed or adjustable rates and for 30- or 15-year terms.
FHA loans have low down payment requirements. You can put down as little as 3.5%.
Borrowers can roll closing costs into their loans.
If you’ve already got an FHA loan, you can refinance with an FHA Streamline. Less documentation is required for this option, and you may not need an appraisal. The FHA Streamline is a good option if you’re not looking to take cash out.
Downtone Loans has been providing our clients with award-winning service for over 60+ Years. We service 99% of our loans, which means you’ll get the same care and attention throughout the entire life of your loan.