What Are FHA Loans?

Federal Housing Administration (FHA) loans are government-backed mortgages designed to make homeownership accessible to a broader range of borrowers, particularly those with lower credit scores or limited savings for a down payment.

Why Choose an FHA Loan?

• Low Down Payment Requirements: FHA loans allow down payments as low as 3.5%.
• Flexible Credit Score Standards: Borrowers with credit scores as low as 580 may qualify, and even scores between 500-579 may be eligible with a higher down payment.
• Assumable Loans: FHA loans can be transferred to a new buyer, offering potential savings if interest rates rise.
• Lower Closing Costs: FHA loans often include capped closing costs, making them more affordable.

Eligibility Requirements

• Minimum credit score of 500 (with additional down payment requirements if below 580).
• First-time homebuyers.
• Stable income and employment history.
• Property must meet FHA safety standards and be your primary residence.

FHA Mortgage Insurance Premium (MIP)

FHA loans require an upfront MIP and annual MIP. However, the upfront MIP can be rolled into the loan amount.