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What You Need To Know About An FHA Loan
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Securing a home loan mortgage can be a tough task. First time home buyers or home buyers with poor credit history know this all too well. If you fall into either of these categories, you should become familiar with a helpful loan option: an FHA Loan.
If you're a first time home buyer or can't secure home loan because of your credit score, get started and become qualified in as little as two minutes!
If you would like to learn more about FHA insured loans, we have you covered!
An FHA loan is a mortgage insured by the Federal Housing Administration, which is a government agency created in part of the National Housing Act of 1934. This agency and the loans they produce were created to provide mortgage lenders adequate insurance, which will make home loans more accessible and affordable for people with less than stellar credit or a low down payment.
Obviously, the higher your credit score is, the lower your down payment needs to be, but in order to secure an FHA loan with maximum financing, a down payment of 3.5% is necessary. In order to make a down payment as small as 3.5%, a credit score of 580 or higher is needed. If you’re credit score lands between 500 and 579, you will need to make a down payment of 10% or higher.
Credit scores under 500 typically make you ineligible for an FHA loan. There are a few exceptions to this rule, though. If you believe your poor credit score is a product of nontraditional credit history or insufficient credit, we can help you, no matter your score.