How Do I Qualify For An FHA Loan?
-
Minimum 3.5% down payment.
-
General minimum FICO® Score of 580.
-
Debt-to-income ratio (DTI) to qualify varies, but can be as high as 57%.
-
1.75% of your loan amount to cover the upfront mortgage insurance premium (UFMIP) - 0.01% for FHA Streamlines.
-
3% - 6% of the purchase price to cover closing costs.
How Do FHA Loans Work?
FHA loans offer a lower minimum down payment requirement than many conventional loans and are accessible to applicants with credit scores that may not meet the standards typically expected by leading mortgage lenders. These loans are specifically designed to assist low- to moderate-income families in achieving homeownership, and they are particularly favored by first-time homebuyers.
Who Are FHA Loans Best For?
FHA loans offer a lower minimum down payment requirement than many conventional loans and are accessible to applicants with credit scores that may not meet the standards typically expected by leading mortgage lenders. These loans are specifically designed to assist low- to moderate-income families in achieving homeownership, and they are particularly favored by first-time homebuyers.
What are FHA Loan Benefits
-
Credit score requirements are lower compared to other loans.
-
You could still qualify for an FHA loan if you’ve had a bankruptcy or other financial issues in the past.
-
FHA loans are available with fixed or adjustable rates and for 30- or 15-year terms.
-
FHA loans have low down payment requirements. You can put down as little as 3.5%.
Refinancing with an FHA loan has some great benefits, too:
-
Borrowers can roll closing costs into their loans.
-
If you’ve already got an FHA loan, you can refinance with an FHA Streamline. Less documentation is required for this option, and you may not need an appraisal. The FHA Streamline is a good option if you’re not looking to take cash out.
