FHA Mortgage Solutions
We want you to be informed and comfortable with the type of loan you choose. Below we have provided information on conventional loans and what we offer. When you are ready, our experienced team can help you decide which type is the right fit for you.
An FHA loan allows a smaller down payment and has lower minimum credit scores. The downside: Mortgage insurance premiums commonly last for the life of the loan.
An FHA loan is a home loan the Federal Housing Administration insures. FHA loans require a smaller a down payment and lower closing costs and allow relaxed lending standards to help homeowners who don’t qualify for a conventional mortgage.
The FHA provides mortgage insurance on loans issued by private lenders, backing them financially in case borrowers default or do not honor the terms and conditions of their mortgages. The premiums on the insurance are paid by the borrower.
The FHA requires a minimum credit score of at least 580 to qualify for the 3.5% down-payment advantage, but a lower credit score doesn’t automatically disqualify you. This credit score requirement can vary by lender.
FHA loans allow a down payment of as little as 3.5% on a mortgage. This can make it possible for lower- and middle-income borrowers to buy a house when they don’t qualify for a conventional loan — which has stricter requirements, including a higher credit score and bigger downpayment.
FHA-insured loans come with competitive interest rates, smaller down payments and lower closing costs than conventional loans. Another FHA loan perk: A financial gift from a family member, employer or charitable organization can account for up to 100% of your down payment.
However, there’s one downside to FHA loans. Mortgage insurance on a conventional loan can be canceled after your loan is paid down to 80% or more of the appraised value of the home, but FHA mortgage insurance stays for the life of the loan.
You might also want to consider a USDA loan . The U.S. Department of Agriculture — like the FHA — offers guarantees on private loans, and it also does some direct lending of its own for low-income borrowers .