Are you striving for homeownership, but not ready to make a 20% down payment? An FHA Loan is your answer!
With FHA Loans, you can get a home loan with as little as 3.5% down.
Take Advantage of FHA Loans to Make Your Dream of Homeownership a Reality
With FHA loans, you can finally purchase a home in the neighborhood you desire, with as little as 3.5% down. With minimal cash investment, and flexible credit score requirements, FHA loans are the perfect loan for homebuyers who earn a lower income, just graduated from school, or are newly married. If you’re a first-time homebuyer, or have previously been denied qualification for a conventional loan, consider the opportunities FHA loans have to offer.
As a nationally approved FHA lender, Homesite Mortgage specializes in helping our customers get into the home of their dreams. That often means offering unique home buyer programs that help qualify prospective homeowners who can’t get approved for a loan elsewhere. FHA Loans allow us to do just that.
What are FHA Loans?
FHA Loans are government-insured loans (by the Federal Housing Administration), which frequently qualify loan applicants who have traditionally-lower credit scores and less cash to offer for a down payment. Because of the minimal credit score and down payment requirements, borrowers must purchase mortgage insurance in order to protect the lender from a loss.
FHA Loan FAQ
Common questions we hear from those considering an FHA loan include:
- Are FHA loans just for first-time buyers? Fortunately, FHA loans are available for more than just first-time buyers. Anyone who meets the FHA loan requirements can apply, including those who have owned a home before and those refinancing existing mortgages.
- Do FHA loans have higher interest rates than conventional loans? The opposite is true. FHA loans tend to have lower interest rates than other loans.
- Can you refinance FHA loans? Yes, you have the option of refinancing your FHA loan. A refinance is a good option if you want to take advantage of lower rates or adjust your term length.
- What would my FHA mortgage rate be? The FHA loan rate you'll get depends on many factors, including credit score and property value. Use Homesite Mortgage's calculator today to get an estimate of what your FHA mortgage will look like.
- What are the FHA loan requirements? To qualify for an FHA home loan, you must have a minimum credit score of 580, provide a minimum 3.5% down payment and have a debt-to-income ratio of less than 43%. Additionally, the home must be your primary residence.
Why FHA Loans?
There are many benefits of FHA home loans that make them highly appealing to first time home-buyers, prospective home owners with low credit scores, and people who cannot qualify to buy a house through a conventional loan.
- Down payments as low as 3.5%: The minimum requirement for an FHA loan is 3.5% of the home's purchase price. You can start your home ownership journey without paying a lot of money upfront.
- Cash borrowing for home repairs: This program offers cash borrowing for home repairs, so you can get your house in good shape without paying for renovations out of pocket.
- Marginal credit scores accepted: Those with less-than-ideal credit or shorter credit histories can still qualify for an FHA home loan with a credit score of only 580.
- Potential NO-CLOSING-COST option: Many FHA loans offer a no-closing-cost option, meaning you'll only have to pay for the fees associated with your loan.
- FHA guarantees on your loans: If you've had trouble qualifying for other loans, have hope in an FHA loan.
- Multiple mortgage types available: The Federal Housing Administration offers a variety of mortgage types and loan options, including fixed-rate loans with terms up to 30 years and adjustable-rate mortgages with a maximum 10-year introductory period.
- Refinancing up to 97.75% of your home’s value: Refinance your loan to reduce your monthly payment or increase funds for other purposes.
- No restrictions on gifted funds: Enjoy the benefits of gifted funds without limitations.
What Options Exist for FHA Home Loans?
Popular options include:
- Fixed Rate FHA Loan
- FHA Adjustable Rate Mortgage
- FHA Graduated Payment Mortgage
- Energy Efficient Mortgage Program
Qualify for an FHA Home Loan Today
At Homesite Mortgage, we know that finding the right home is a big deal. That's why we offer competitive rates and help from start to finish along with on-time inspections and loan closing.
We also know that finding the right loan is just as important. How do you know which one is right for you? It depends on many factors, but one sure thing is that your unique needs deserve a personalized solution. Apply for an FHA loan today!