FHA Loans
Lower Credit? An FHA Loan May Be Right For You.
FHA loans are insured by the Federal Housing Administration, making them accessible to borrowers with lower credit scores and smaller down payments. They are ideal for first-time homebuyers or those with less-than-perfect credit.
FHA Loan Requirements
1.
Minimum Credit Score
Borrowers typically need a credit score of at least 500-580, depending on the down payment amount.
2.
Down Payment
You will be required to make a downpayment of at least 3.5% of your home’s purchase price.
3.
Mortgage Insurance
FHA loans require both an upfront mortgage insurance premium and an annual mortgage insurance premium.
4.
Property Standards
Homes purchased with FHA loans must meet certain minimum property standards established by the FHA.
FHA Loan Benefits
Lower Down Payment
Borrowers typically need a credit score of at least 500-580, depending on the down payment amount.
Flexible Credit Requirements
You will be required to make a downpayment of at least 3.5% of your home’s purchase price.
Competitive Interest Rates
Homes purchased with FHA loans must meet certain minimum property standards established by the FHA.
