How Process Works
About FHA Loan
The Federal Housing Authorization, also known as an FHA loan, is a government-backed loan created for first-time homebuyers and designed to assist those with limited financial resources.
The Federal Housing Administration allows for financing approval with a 3.5 percent down payment and a credit score as low as 580.
If you have less than a 10% down payment on an FHA loan, you must pay mortgage insurance for the life of the loan.
More About FHA Loan
FHA Loan Features
Typically, FHA limits you to having one FHA mortgage to finance your dream home within the loan limits decided for your area. However, an FHA loan allows you to have another home with less documentation and a faster closing. But there are some conditions, which are as follows:
Growing family
You need to buy a bigger home to meet the resident needs of your growing family.
100 miles away
You’re looking for a mortgage for a home that is 100 miles away from your current FHA-financed home.
Divorce
You’re getting divorced, and your spouse is staying in the current home.
You were a co-borrower
You were a co-borrower for someone else’s FHA loan.
Relocation
You’re relocating for a new job opportunity.
You were a co-borrower
You were a co-borrower for someone else’s FHA loan.
FAQ's
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How long will I have to pay mortgage insurance with the FHA loan program?
You have to pay mortgage insurance for the life of the loan for the FHA program. You can’t cancel it if you have made less than a 10% down payment. However, you can get rid of it by refinancing the mortgage into a conventional loan with enough equity in your home.
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Is an FHA Loan just for first-time buyers?
FHA loans aren't only for first-time home buyers. Individuals who already own a home can use an FHA loan to finance their new home. However, they must meet specific requirements to be qualified for an FHA loan.
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How much income do I need to qualify for an FHA loan?
There are no specific income requirements to qualify for an FHA loan.
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