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 $541,287 to $1,249,125 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