Why Choose an FHA Mortgage?
Home loans insured by the Federal Housing Administration (FHA) can make it easier for your customers to qualify to purchase or refinance a home. This loan option offers flexible qualification guidelines to help people who may not qualify for a conventional mortgage.
- Increases chances of buyer eligibility
- First-time home buyers programs
- For those that may not qualify for conventional home loans
- Low down payment (as low as 3.5%)
- Allows for alternative credit sources
- Allows borrowers to qualify with credit scores as low as 600
- Cash-out refinancing
- Seller can credit up to 6% of the sales price toward buyers closing costs and prepaid items
- Must be owner-occupied by Borrower -Non-occupying co-borrower(relative allowed)
- 1-4 family owner occupied
- Typically can only have one FHA loan
- Up to a four unity property, with at least one unit owner occupied
- Condos must be on HUD-approved list
Job Requirement Guidelines
- W-2 Self Employed Borrowers allowed. *HUD’s income and employment requirements must be met.
- Monthly MIP based on LTV and Mortgage Term
- Up-Front MIP of 1.75% included in the loan amount