FHA Loans

FHA is one of the most flexible loan options available. The credit requirements are not as strict as a conventional mortgage, and FHA will allow for a higher qualifying debt-to-income (DTI) ratio. These loans are approved and funded by the lender, and then HUD insures the loan. Some of the features of an FHA loan include:

• Down-payment as low as 3.5% with min 580 credit score
• 500-579 credit score eligible with 10% down-payment
• Maximum loan amounts from $472,030to $1,089,300 for single-family homes. Higher limits for 2-4 unit properties (look up your area here: https://entp.hud.gov/idapp/html/hicostlook.cfm )
• Up-front and monthly mortgage insurance charged to the borrower
• On purchases, sellers can pay buyer’s closing costs, pre-paids, and escrows up to 6% of sales price
• Only available for primary residence 1-4 unit residential real estate