Why Choose An FHA Mortgage?
FHA Home Loans Offer Several Benefits
Low Down Payment
FHA mortgage loans require only 3.5% down. That down payment can come from your own savings, gifts from family, employer benefits, grants and Down Payment Assistance Programs.
Very Cost-Effective
- FHA loans avoid most loan level pricing adjustments.
- Every loan’s rate and fee options are based on the perceived risk by the investor. With the backing of HUD and the Federal Housing Administration, the lender’s risk is insured.
- That means that if you have marginal credit, or only a little down payment (or equity in a refinance) you have better rate and fee choices.
We Help You Assess Your Best Options
Lower Credit Scores Qualify
- Conventional loans require a 620+ credit score.
- You can qualify for FHA mortgages with as low as a 500 credit score, if you have 10% down (or 10% equity in a refinance).
- 580 is the minimum credit score to qualify with just 3.5% down.
- In some cases, we can use alternative credit to qualify you, too.
- The pricing adjustments to your rate and fee choices are minimized with FHA home loans, making them more cost-effective
- Seasoning the time from major derogatory events like bankruptcy, or foreclosures are shorter than conventional mortgages.
Higher Debt To Income Ratios May Qualify
Look. Just because you can qualify for more borrowing, doesn’t mean you should take it. You don’t want to be house poor. But, there are circumstances where on paper your debt to income ratio may be higher than how you actually live. In those cases, qualifying with a higher DTI (debt to income ratio) can be helpful.
Other FHA Loan Benefits
- Streamline Refinances. Sign And Save!
- FHA Rehab Or Renovation Loans
- FHA Construction Loans. Yes, We Do Those Too.
- Help Build Your Credit History
FHA Mortgage Insurance
- FHA loans have up front and annual mortgage insurance premiums.
- The up front premium is 1.75% of your loan amount. This can be paid in advance at closing, or financed on top of your loan amount.
- FHA’s annual mortgage insurance is lower than many private mortgage insurance premiums, particularly with marginal credit and low down payment.
Steps To Your FHA Home Purchase:
- Get an FHA mortgage preapproval. You want to understand the math behind your rate and fee options, your total monthly housing expense, and your total cash to close.
- Start shopping for a home that meets your needs and budget.
- Make an offer on a home you like. Our mortgage preapproval letters are specific to your offer/s, so you’re not showing your cards to the seller.
- Get into contract.
- Close your home purchase. We can usually close your FHA loan in two or three weeks, if speed is important to the seller.
- Enjoy your new home!
Your Roadmap To Homeownership
We can get you qualified and preapproved in about a ten minute conversation (or you can complete our online FHA mortgage preapproval application, that we’ll follow with a phone call). But, sometimes you’ll find that you won’t qualify for what you’d hoped.
- Maybe you need to boost your credit?
- Maybe you need to save more for your down payment and closing costs?
- Maybe you need a little more income to get into the home that best fits your needs?
Whatever the reason may be, we’re with you, every step of the way. And, we often have solutions you may not have considered, to get where you want to be, too. Either way, you will have a clear roadmap to achieve your goal of buying your first home.
We Respect Your Privacy
Don’t worry. You won’t get bombarded by telemarketers. We’re not like lendingtree or bankrate that are lead generating funnels who sell your information to mortgage companies. Nor are we a fully electronic, nameless, faceless app, that serves up information without helpful insight. We’re real people, at your service to help you evaluate your spectrum of options, and make the best decisions to suit your needs.