An FHA Loan may help you get into a home with a low down payment.

Saving for a down payment can be one of the biggest challenges that a first time homeowner faces. 

An FHA loan is government-insured and has some flexible features. FHA loans are not just for first-time homebuyers. The FHA offers great options if you have had prior credit challenges, need to take cash out of your property, or have limited funds for a down payment.

What is an FHA loan?

FHA loans are mortgages that are fully backed by the Department of Housing and Urban Development (HUD). When purchasing a home, the FHA only requires 3.5% down. Since the loan is backed by the Federal Government, FHA loans are possible even if a borrower has a low credit score, prior bankruptcy, or even a prior foreclosure.

 

What is required for an FHA loan?

The documentation for an FHA loan is very similar to that of any other mortgage loan. A lender will verify your employment history, the value of the property, and your debt-to-income ratio. If you have a score of at least 580, you can purchase a home with 3.5% down. Lower scores are possible with a larger down payment.

 

How do FHA Loans Work?

  • Purchase or refinance a home with as little as 3.5% equity (vs 20% for most other loans)
  • 30, 25, 20, and 15-year terms are available
  • You are able to pre-pay your mortgage at any time with no prepayment penalty

 

Have Questions?

Give us a call at 888-404-4488. We have mortgage specialists standing by to answer any questions you might have.

*LoanFront, LLC is not affiliated with or acting on behalf of the FHA, VA, USDA, or Federal Government