FHA Loans

FHA loans allow you to put a reduced down payment on your new home. You are only required to put a down payment of 3.5%. (This 3.5% down payment does not include closing costs and prepaids, which are still required to be paid.) FHA also allows for less-than-perfect credit, and in today’s credit world, this is a real plus.

Closing Costs and Prepaids can also be paid by the seller. The amount the seller can pay is currently up to 6% of the sale price. These guidelines can change as government regulations change.

A Gift from a family member can also be used for the down payment and all closing costs and prepaids.

Mortgage Insurance Premium (MIP) FHA has an up-front MIP that is normally rolled into the loan amount, and it also has a monthly amount that is included in the payment.

This loan program is sometimes considered a first-time home buyer program, but can be used over and over. With FHA’s affordable lower down payment options, you don’t have to wait to become a homeowner with a large down payment. It is great to know that you can purchase your dream home with as little as 3.5% down.

96.5% Financing for First-Time Home Buyers and Repeat FHA Buyers

  • Financing with less than $1,000 in outstanding credit collections
  • Financing if you are in consumer credit counseling (CCCS), must be in for at least 12 months and current on payments
  • Financing three years after foreclosure on FHA loans
  • Financing two to three years after a Short Sale (some restrictions apply)
  • Financing if you are in a Chapter 13 bankruptcy for the past year and paying on time with a minimum credit score of 640 (some restrictions apply)
  • Financing two years after Chapter 7 bankruptcy with credit score above 640
  • Loan Terms or length of loans can be 30-, 25-, 20-, 15-, and 10-year terms

These guidelines are constantly being modified, so getting prequalified up front is now more important than ever. Apply today and see what sales price and loan programs are available to you.

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