FHA Loans

FHA Loans: A Smart Choice for First-Time & Low Down Payment Buyers

FHA loans are a government-backed mortgage option designed to help more buyers achieve homeownership, especially first-time homebuyers or those with lower credit scores and smaller down payments. These loans are insured by the Federal Housing Administration (FHA), making them more accessible than conventional loans.

Key Benefits of FHA Loans:

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Low Down Payment

– As little as 3.5% down with a credit score of 580+

.

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More Lenient Credit Requirements

– Buyers with scores as low as 500 may qualify with a 10% down payment.

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Flexible Debt-to-Income Ratios

– Higher DTI allowances compared to conventional loans.

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Government-Backed Security

– FHA loans reduce lender risk, making it easier for buyers to qualify.

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Assumable Loan Option

– Future buyers may be able to take over your FHA loan with its existing rate.

Who Qualifies for an FHA Loan?

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Credit Score:

580+ for 3.5% down

, 500-579 for 10% down.

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Debt-to-Income (DTI) Ratio:

Typically up to 56.99%

with strong compensating factors.

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Steady Income & Employment:

Must show reliable earnings.

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Primary Residence Requirement:

FHA loans cannot be used for second homes or investment properties.

FHA Loan Types:

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FHA Purchase Loan

– Ideal for first-time or low down payment buyers.

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FHA Streamline Refinance

– Fast, low-cost way to refinance an existing FHA loan.

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FHA 203(k) Renovation Loan

– Combines the cost of home purchase & renovations into one loan.

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FHA Manufactured Home Loans

– Designed for eligible mobile or manufactured homes.

FHA loans make homeownership more accessible and affordable, especially if you're working with limited savings or credit challenges.

Ready to get started? Let’s explore your options today!