FHA Mortgages

FHA Loans: Low Down Payment Mortgage Option for First-Time Buyers

An FHA loan, insured by the Federal Housing Administration, is designed to help homebuyers with lower credit scores and smaller down payments achieve homeownership. These loans offer more lenient approval guidelines and are an excellent choice for first-time buyers.

Key Benefits of an FHA Loan:

✔️ Low Down Payment – Get into a home with as little as 3.5% down.

✔️ Lower Credit Score Requirements – Qualify with a credit score as low as 500 (with 10% down) or 580+ with 3.5% down.

✔️ More Lenient Debt-to-Income Ratios – Borrowers may qualify with a DTI ratio as high as 57% in some cases.

✔️ Competitive Interest Rates – FHA loans offer competitive rates even for borrowers with less-than-perfect credit.

✔️ Allows Gift Funds – Use gift money from family for your down payment.

FHA Loan Requirements:

• Minimum credit score of 580 for 3.5% down or 500 for 10% down.

• Mortgage insurance required (upfront and monthly MIP).

• Property must meet FHA safety and appraisal guidelines.

• Primary residences only (cannot be used for second homes or investment properties).

Who Should Consider an FHA Loan?

✔️ First-time homebuyers with limited savings.

✔️ Borrowers with credit challenges.

✔️ Buyers needing more flexible income and DTI requirements.

Want to see if an FHA loan is right for you? Contact us today to get started!