FHA loans have been helping people become homeowners since 1934. How? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal. FHA loans offer:
- Low down payments
- Low closing costs
- Easy credit qualifying
Basic Home Mortgage Loan 203(b)
The Basic Home Mortgage Loan is for the purchase of a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD.
- The borrower is eligible for approximately 96.5% financing.
- The borrower is able to finance the upfront mortgage insurance premium into the mortgage.
- The borrower will also be responsible for paying an annual premium as part of their monthly payment.
- The down payment can come from savings, a financial gift from a family member or a grant for down-payment assistance.
- If you’re not sure if you qualify for down-payment assistance, an approved FHA lender will let you know.
- You’ll generally need a credit score of at least 640 to qualify.
- Eligible properties are one-to-four unit structures, including condos and manufactured/mobile homes.
- FHA mortgages are available in both fixed or adjustable rate options.
Ready to see if you qualify for an FHA mortgage? Fill out the form below to be contacted by an approved FHA lender.