The primary goal of the Federal Housing Administration (FHA) is to improve the housing market and protect lenders in the event of a borrower wants to default on their mortgage. The FHA has grown to become one of the largest insurers of mortgages in the world, having insured over 34 million mortgages over the past 75 years. Robert Slater “The Bank” is proud to offer great rates and flexible financing on FHA loans.
An FHA loan can be used for a number of different purposes, including purchasing a new home, refinancing an existing mortgage, special renovation products and even purchasing up to a 4 unit complex. FHA loans also help the seniors with the reverse mortgage. Cash out refinance options are available to buyers in need of capital for home repairs or debt consolidations, while streamline finances loans are available to reduce interest on current loans.
FHA Loans require relaxed credit requirements, low down payment options and are much easier to qualify for. Buyers can qualify for a FHA loan with a down payment of only 3.5% of the purchase price and a credit score of 580. Even if the buyer does not have adequate savings to cover the down payment, family members are able to give money in the form of a gift. At times, there are also county programs available to assist with down payment. Given the ease of qualification, FHA loans tend to be very popular among first time home buyers.
FHA Loan Requirements
– Income Requirements: Debt to income ratio up to 50%, could be approved in some circumstances.
– Credit Score: Typically, the minimum credit score required is 580. However, borrowers with a lower credit score could qualify with a high down payment. Banks are usually searching for a 700+ score requirement.
– Down Payment: A down payment of 3.5% of the sales price is the minimum allowed. As noted above, if the buyer’s credit score does not support this, a higher down payment may be required.
– Property Requirements: All properties purchased through the FHA must meet certain safety, soundness and security requirements.
At Robert Slater “The Bank” Home Loans, we are committed to helping our clients with all of their FHA home loan needs. If you are purchasing your very first home or looking to refinance, we can help. Contact us today @ 714-770-7057 with any questions you may have on FHA loans or for your free consultation.