FHA Mortgages

Opening doors to homeownership with FHA loans.

Apply

Looking to become a homeowner but worried about strict qualification requirements?

Consider an FHA loan!

Insured by the Federal Housing Administration, these loans are designed to make homeownership more accessible.

An FHA loan is a type of mortgage loan that is insured by the Federal Housing Administration, designed to make it easier for first-time homebuyers and low-income borrowers to become homeowners. It has lower credit score and down payment requirements than conventional loans, and more flexible underwriting guidelines. FHA loans also require mortgage insurance premiums to protect the lender in case of default.

apply now

The most common types of FHA loans include:

Fixed-rate FHA loans:

These loans have a fixed interest rate for the life of the loan, which means that the monthly mortgage payment will remain the same over the entire repayment period.

Adjustable-rate FHA loans:

These loans have an interest rate that can fluctuate over time based on market conditions, which means that the monthly mortgage payment can also change.

FHA 203(k) loans:

These loans are designed to help borrowers finance the cost of home renovations and repairs. The loan amount is based on the projected value of the home after the renovations have been completed.

Energy-efficient mortgage (EEM) loans:

These loans are designed to help borrowers finance the cost of energy-efficient upgrades to their homes, such as installing solar panels or upgrading to energy-efficient appliances.

FHA streamline refinancing:

This type of loan is designed to help borrowers refinance their existing FHA loan into a new FHA loan with a lower interest rate and/or more favorable terms. Streamlined refinancing can be done with minimal documentation and underwriting requirements.

The most common types of FHA loans are fixed-rate and adjustable-rate mortgages, with FHA 203(k) loans and EEM loans being less common but still available for eligible borrowers.

There are several benefits of using an FHA loan, including:



Lower down payment requirements:

FHA loans typically require a lower down payment than conventional loans. The minimum down payment for an FHA loan is 3.5% of the purchase price, whereas conventional loans may require a down payment of up to 20% of the purchase price. This makes it easier for borrowers to qualify for a loan and become homeowners.



Easier credit qualification:

FHA loans are designed to help borrowers with lower credit scores or limited credit histories to qualify for a mortgage. The minimum credit score requirement for an FHA loan is typically lower than for a conventional loan, and lenders may be more lenient with credit history and debt-to-income ratios.



More flexible income requirements:

FHA loans have more flexible income requirements than conventional loans, which may make it easier for borrowers with lower incomes to qualify for a mortgage.



Mortgage insurance:

FHA loans require borrowers to pay mortgage insurance premiums, which protect the lender in the event of a default. However, the premiums are often lower than those for private mortgage insurance (PMI) on a conventional loan, especially for borrowers with lower credit scores or smaller down payments.



Streamlined refinancing options:

FHA loans offer streamlined refinancing options, which can make it easier and less expensive for borrowers to refinance their mortgage if interest rates drop or their financial situation changes.

Overall, FHA loans can be a good option for borrowers who have lower credit scores or limited resources for a down payment, and who want to become homeowners but may have difficulty qualifying for a conventional loan.

Visit our FHA Loan Center to check our latest rates or contact us today to learn more!

CONTACT US