FHA Loan Programs
If you don’t qualify for a VA loan, don’t feel disheartened. Our experienced and dependable brokers will help you with the home loan application process of other programs, such as the Federal Housing Administration (FHA) loan program.
What Is an FHA Loan Program?
The Federal Housing Administration loan program, commonly known as the FHA loan, is a home loan guaranteed by a federal government institution. Private lenders, then, have the assurance that if you cannot repay your loan, the FHA will shoulder it.
The FHA loan program, in particular, helped the housing market get back on its feet and stabilize during the Great Depression. Since then, it has insured more than 45.7 million home loans. As a result, it is a major contributor to the stable rate of homeownership in the United States, despite fluctuations in the housing market.
What Are the Benefits of FHA Loans?
While the FHA mortgage loan programis not the most suitable loan program for everybody, it is an excellent fit for people who are looking for these benefits:
- Low Down Payment.You can apply for an FHA loan with a low down payment of 3.5 percent, whereas other loans usually require a higher down payment.
- Chance to Reset. If your lending history includes a recent bankruptcy or a foreclosure, you might have a higher chance for FHA loan approval.
- Home Repair and Improvement.Some FHA loans give you more room for home improvements, especially when the property you’re buying requires upgrades.
Additionally, if you choose to pay for the rest of the loan before the deadline, this type of loan does not have any prepayment penalty.
How Can People Qualify for an FHA Loan?
FHA loans are arguably the most common government-backed home loan. But this does not mean that everybody automatically qualifies for it. Here are the basic requirements for FHA loan approval:
- 5 percent down payment for borrowers with at least 620 credit score
- 10 percent down payment for borrowers with 500 to 579 credit score
- Steady employment in the same company for at least two years
- Primary residential occupancy of the house
- Appraisal by an FHA-approved appraiser
- Mortgage insurance
People 18 years and above may apply for the loan given that you meet these qualifications of the FHA loan program.
Get in Touch with Us Today
Come to us if you are a first-time home buyer, a borrower with a low credit rating, or a borrower who cannot afford a large down payment. We’ll be with you every step of the FHA home loanprocess.