FHA Home Loans
Low down payment options and flexible credit requirements make the FHA loan program an ideal choice for many first-time buyers.
What is an FHA home loan?
Do low down payment options and flexible credit requirements sound good? Of course, they do! FHA loans offer those benefits, as well as the option to use gift funds for down payment and closing costs.
These are called FHA loans because the Federal Housing Administration (FHA) insures this type of mortgage after it has been issued by an FHA-approved lender. One important thing to keep in mind is that if you finance your home using an FHA loan, you’ll have to pay mortgage insurance. These insurance premiums help protect lenders in case an FHA borrower defaults on their loan.
With less-than-perfect credit or little down, you could qualify for an FHA and pay only 3.5% down* on your home.
Getting Your FHA Loan
Benefits of an FHA loan
If you’re looking for low closing costs, flexible credit requirements, and low down payment options, an FHA loan could be a great option for you. These benefits make FHA loans popular with first-time home buyers, but FHA loans are available to a wider variety of buyers. Ultimately, FHA loans are attractive to any buyers who are looking to finance their home with less cash out-of-pocket and may have lower credit scores.
Who qualifies for an FHA mortgage?
If you don’t have a large down payment saved or your credit score isn’t quite high enough for other loans, an FHA loan could be a great option for you!
You may be eligible for this program if you have a credit score over 580 and a maximum debt-to-income ratio of 55% (for purchase or rate/term refinance transactions where automated underwriting findings show your loan as "approved/eligible"). Your loan officer will review your financial and credit history to find out if you meet the requirements for this loan program.
If you want to finance a second home or rental property, an FHA loan isn’t your solution. These mortgages can only be used on primary residences. Depending on your circumstances, you could consider a conventional loan for a second home or rental property.
Apply for an FHA loan with Better Built Mortgage Group
Our team of home financing experts can walk you through the process and help you find the right loan for your situation.
Our company is not endorsed by, nor acting on behalf of or at the direction of the U.S. Department of Housing and Urban Development, Federal Housing Administration, U.S. Department of Agriculture, Veterans Administration or the Federal Government.