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What Are FHA Loan Programs?

Many first-time homebuyers find it challenging to save the money required to make the sizeable down payment required to own a home. Even experienced homebuyers can find themselves saving money for a long time before their new home purchase becomes a reality.

A Federal Housing Administration (FHA) loan can help some people achieve the dream of homeownership by offering a low down payment. As the name of this loan implies, the United States Federal Housing Administration backs these mortgages. In some cases, people can purchase new homes by paying as little as 3.5% down.

What Are the Requirements for an FHA Loan?

When it comes to FHA loan requirements, the process is similar to that of other types of home loans. For instance, an FHA mortgage broker will typically need to see a borrower’s:

• History of employment
• Property appraisal
• Debt-to-income ratio

A borrower’s credit score is another factor regarding FHA loan programs. Some buyers can qualify for a 3.5% down payment on a home. A lender may require a higher down payment if a borrower has a credit score below 580.

A lower credit score or a lack of extensive credit history won’t necessarily disqualify a borrower from qualifying for FHA home loan rates. While lenders can be less strict with credit requirements, this leniency happens when a borrower presents proof they can properly manage their finances. If that’s the case, an FHA mortgage broker may ask you for documents or explanations to help you qualify for this type of loan.

Benefits of FHA Loan Programs

• Buying a home with a down payment as low as 3.5%
• Choosing from available 15, 20, 25, or 30-year terms at fixed rates or a 5-year adjustable rate mortgage
• Having the opportunity to pay off your mortgage without pre-payment penalties

Do you need help or have questions about FHA home loan rates and programs? Call for a free consultation today to speak with one of our loan specialists.

**Lend 4 You is an FHA mortgage broker and is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA, or the Federal Government.