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FHA loans.
Backed by the Federal Housing Administration, FHA loans make buying a home possible for people with less than perfect credit or who have not saved a large down payment.
First-time buyers
Why choose an FHA loan?
The FHA insures the loan against default. That backing is what lets us approve buyers who would be turned down for a conventional loan, and it is why FHA is the most common way into a first home.
Easier credit requirements
FHA has some of the most forgiving credit requirements of any loan. If your credit is thin, still recovering, or has a late payment on it, this is usually the first place to look.
Less cash needed up front
FHA asks for less money down than a conventional loan. If you can handle the monthly payment but have not been able to save a large amount, this is the program built for you.
More room in your budget
FHA allows a higher debt-to-income ratio than most programs, so more of your monthly income can go toward the house.
Works with down payment assistance
FHA pairs with down payment assistance more often than any other loan. Your loan officer can put the two together.
What to know about mortgage insurance
FHA loans come with mortgage insurance, and on most of them you pay it for as long as you have the loan. On a conventional loan it drops off once you own enough of the house. Plenty of buyers start with FHA and refinance to conventional a few years later, once their credit and their equity have caught up.
FHA loan limits
FHA sets a maximum loan amount and it changes county by county. Your loan officer will check the limit where you are buying before you make an offer.
Is FHA right for you?
FHA is a strong option for a two to four unit property you plan to live in, and for buyers who want to keep more cash in the bank. It is not always the better deal. On the same file, FHA and conventional can go either way depending on your credit and how much you have saved.
Ask us to compare. We will run FHA and conventional side by side on your numbers and show you both in writing, so you can see the difference before you choose.
How to apply for an FHA loan
- Talk to a loan officerFifteen minutes, before you start looking at houses.
- Get pre-approvedAn underwriter reviews your income and credit, so sellers take your offer seriously.
- Shop and go under contractYour loan officer works with your agent from here.
- Appraisal, underwriting, closeThree to four weeks on a clean file.
Find out what you qualify for.
A licensed loan officer reviews what you send and tells you where you stand, in writing. No cost, and no obligation to go further.