FHA Loans

Why Choose an FHA Mortgage?

Home loans insured by the Federal Housing Administration (FHA) can make it easier for your members 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.

FHA Benefits

• 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 

General Guidelines

• 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.

Mortgage Insurance

• Monthly MIP based on LTV and Mortgage Term
• Up-Front MIP of 1.75% included in the loan amount