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FHA Loans
Buying your first home?If you are a first-time home buyer or have bought a home before and have less than perfect credit you have come to the right place. One of our loan specialists will take you through the loan process step-by-step.
The FHA loan program was created to help increase homeownership. The FHA program makes buying a home easier and less expensive than other types of real estate mortgage home loan programs. Some highlights of the FHA loan program are:
Minimal Down Payment and Closing Costs.
- Down payment is 3.5% of sales price.
- A gift for the down payment and closing costs is allowed.
- No reserves are required.
- Seller can credit up to 6% of sales price towards buyers costs.
- Minimum FICO score is 640.
- Alternative credit is also acceptable for those who have not established a credit history. For example, by providing satisfactory credit references from a utility company, automobile insurance payments, rental payments etc. where there is no less than 12 months in duration.
- Higher Debt Ratio's than other home loan programs.
- Less than two years on the job is allowed.
- Self-Employed individuals (must have business licenses for 2 years and tax returns)
- In most cases, when you obtain an FHA Loan, lenders can offer you lower, more affordable rates. This is possible because the FHA insures lenders, so they have less risk by taking you on as a borrower. FHA loans are funded by financial institutions such as mortgage centers or banks. The Federal Housing Administration is a branch of the Department of Housing and Urban Development and provides lenders with insurance on your loan. The FHA is here to help you become a homeowner.