FHA Loans may be a flexible and easier option to buy or refinance in today's market
A FHA loan is backed by the Federal Housing Administration (FHA) and makes homeownership more attainable without a large down payment or perfect credit.
Quick Overview
FHA loans offer flexible guidelines for borrowers with less than perfect credit history and limited down payment funds qualify for homes. The leniency towards minimum credit scores and low down payments make FHA home loans especially popular with first-time homebuyers.
How Do I Qualify for an FHA Loan?
FHA Requirements:
- Minimum Credit Score: 580
- Down payment: 3.5% with a credit score of 580+ and 10% for a score of 500-579
- Stable Income: Minimum 2 years history
- Credit history: reflecting a positive credit worthiness of debt repayment
- Sufficient Assets: meeting down payment and closing cost requirements.
- Down payment Gifts: 100% down
- Down Payment Assistance Property (DPA) Eligibility: Yes
- Loan Terms: 15 or 30 years
- Mortgage insurance Premium (MIP): Upfront MIP + annual MIP for either 11 years or the life of the loan depending on LTV and length of the loan
- Mortgage Insurance Premiums: Upfront – 1.75% of the loan + annual of 0.45% to 1.05%