FHA Loan

The primary advantage of FHA loans is that the credit criteria is not as tight as it is for a conventional loan.

If you are looking to purchase a home, but cannot qualify for a conventional loan due to not enough down payment or enough qualifying income, you may be able to qualify for a Federal Housing Administration mortgage insurance backed loan (an FHA insured loan).

The primary advantage of FHA loans is that the credit criteria is not as tight as it is for a conventional loan, which is sold by Fannie Mae or Freddie Mac (investors). Someone with credit problems who cannot obtain traditional credit, may qualify for FHA financing. The debt to income ratio is also higher than conventional loans, allowing homebuyers with less income to qualify.

The FHA loan however, has both an up-front mortgage insurance premium (MIP) equal to 1.75% of the loan amount at closing, and a monthly mortgage insurance premium (MIP). The up-front mortgage insurance premium (MIP) can be financed by the lender and paid to FHA on the borrower’s behalf.

FHA loans can be a great option for first time homebuyers, but they are available to anyone looking to purchase or refinance their home.

Some basics include the following:

• Minimum down payment is 3.5%
• Flexible underwriting
• Great for first time homebuyers
• Available for purchase or refinance

How to Get Started

To select a FHA Loan, apply online, or contact us today: 808-270-2775 or toll-free 1-877-270-2542