FHA Loan Requirements
Mortgage Insurance is Required for an FHA Loan
Mortgage Insurance is Required for an FHA Loan
An FHA loan is a mortgage loan that is insured by the Federal Housing Administration (FHA). The FHA loan is very popular in today’s market mostly especially with first time home buyers because the requirements are less strict than the conventional loans.
Down payment as little at 3.5%
Credit score 580 or higher.
Credit scores can be between 500-579 if a 10% down payment is made.
One thing to consider however is that the lower your FICO score, the higher the rate typically. Contact us if you need assistance in reviewing your credit.
Now, another advantage of the FHA loan is that it can be assumable, meaning that if you want to sell your home, the buyer can “assume” the loan you have. This is very helpful for people who have had a bankruptcy but can still qualify for an FHA loan.
Due to the reduced strict standards of a conventional loan, two kinds of mortgage insurance premiums are added. They are as follows:
Contact our Professional Mortgage Loan Officer to walk you through the Terms,
Loan Amounts, LTV ration and annual insurance premium.
All the FHA loan requirements are set forth by the Federal Housing Authority and include the following:
Each state and county sets the FHA mortgage limits.