An FHA loan provides a government-insured loan with flexible loan options and low down-payment requirements.
What is an FHA loan?
An FHA loan is insured by the Federal Housing Administration and is a popular choice for many first-time home buyers. It allows for less-than-perfect credit, higher debt-to-income ratios, and a low down payment.
An FHA loan typically requires a minimum credit score of 580 and a minimum down payment of 3.5%. With a larger down payment, lower credit scores can be considered.
FHA loans require mortgage insurance regardless of the down payment. FHA charges upfront mortgage insurance and monthly mortgage insurance. The cost of the mortgage insurance is the same for all borrowers regardless of credit. Mortgage insurance on FHA loans never drops off (except in rare circumstances).
If you want to learn more about FHA loans and the benefits they offer, reach out today!
Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.
**Lift Home Lending is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.
