Top of Page

Loan Types

Experienced Staff. Exceptional Service

Federal Housing Administration Loan

The Federal Housing Administration (FHA) Loan Program is designed to assist homebuyers with low down payments and affordable closing costs. The U.S. Department of Housing and Urban Development (HUD) insures these loans. HUD insures loans in urban and rural areas for owner-occupied single family homes, excluding investment properties.

FHA Loan Information:

  • FHA Loans only require a 3.5% down payment with a 580 credit score. Also, you may qualify with credit that ranges from 500-579 with a 10% down payment.
  • The FHA allows sellers, builders, and lenders to pay up to 6% of closing costs.
  • Gift funds are allowed (subject to FHA guidelines).
  • Borrowers are required to pay two types of mortgage insurance premiums. One is an upfront mortgage insurance premium which is 1.75% of the home loan or it can be financed into the mortgage. The second mortgage insurance premium is the annual premium which is paid monthly.

Candidates for FHA Loans:

  • Borrowers with a lower credit rating (subject to FHA guidelines).
  • Anyone who cannot afford a large down payment.
  • A person with a higher debt-to-income ratio.

If you are interested in buying a home and meet the FHA’s credit qualifications, you may be eligible for the FHA loan. Contact the loan office closest to you for more information.