What are FHA Loans?
FHA loans, insured by the Federal Housing Administration, offer benefits like low down payments and flexible credit requirements, making them appealing to first-time homebuyers and those with less-than-perfect credit. These loans require mortgage insurance and have specific property standards, but offer advantages like lower loan limits and assumability.
FHA Loan Requirements
Minimum 580 Credit Score
A minimum credit score of 580 is required for FHA Loans.
3.5% Down Payment
FHA loans require a down payment of at least 3.5%.
3% - 6% in Closing Costs
You'll need 3-6% of the purchase price available for closing costs.
Mortgage Insurance Premium (MIP)
An upfront mortgage insurance premium of only 1.75% of the base loan amount as well as month MIP is required.
Loan Benefits
Low Down Payment
You can move into your new home with a down payment as low as 3%.
Low Credit Score Requirements
You can get be approved for an FHA Loan with credit score of just 580 or higher.
Shorter Waiting Periods
You may qualify for an FHA loan sooner after a major event such as foreclosure, bankruptcy or missed payment.
Flexible Debt-To-Income Requirements
FHA loans have more flexible debt-to-income (DTI) requirements than some other loans.
Flexible Borrowing Options
With FHA loans, you have the options of a 15-year or 30-year term - with either a fixed or variable interest rate.
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Derek is always a pleasure to work with. I’ve known him for several years now and anyone that I know of that is looking to purchase a property I always refer them to Derek. He takes the time to answer questions and really cares about his clients. It’s nice that he stayed in touch with us long after we’ve purchased our properties going through him and his team.
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