Home Lender USA
Is an FHA Loan right for you?

There are many loan options available when getting qualified for a mortgage loan. Loan approval will depend on your income, credit score, purchase price and how much money you have available for a down payment. One loan option to consider is an FHA Loan.
FHA stands for Federal Housing Administration and is a part of HUD or Housing and Urban Development. The FHA or Federal Housing Administration provides mortgage insurance for home loans made by FHA approved mortgage lenders through out the United States. There are several benefits of FHA loans. The most common benefits include lower down payment requirements, lower credit score standards, and higher debt to income ratios.
In most cases you can buy a home using an FHA Loan with a down payment as little as 3.5% of the sales price of the home. FHA loans also allow for the down payment for your home to come from various sources. If you do not have 3.5% for a down payment saved in your bank account, FHA allows a close family member to "Gift" you the 3.5% down payment. There are also down payment assistant programs available in your city, county or state, that can be used in conjunction with an FHA Loan. Ask your loan officer about these programs and see if you qualify.
In addition to lower down payment requirements, FHA Loans have more flexible credit guidelines and lower credit score requirements, which can make it easier to qualify for a mortgage loan. FHA approved mortgage lenders still require a satisfactory credit history, but can be flexible if you had some circumstances that led to some previous credit late payments. Each lender as their own requirements in regards to minimum credit scores. FHA does allow credit scores for approval as low as 580, but FHA approved lenders may have a higher credit score requirement.
As with any home loan there are pros and cons to consider. FHA Loans can be more of an expensive loan because of the FHA Mortgage Insurance Premiums that are paid additional to the mortgage payment. Keep in mind even with the mortgage insurance premiums, an FHA Loan is a great option to be able to buy a home when you do not have a 20% down payment or perfect credit.
Be sure to discuss which loan option is best for your situation with a trusted loan officer. If you don't know one ask a friend for a referral, if they don't know one ask us we can put you in touch with a preferred lending partner.