FHA Loans
- Minimum FICO score requirement of 500 – down payment will vary
- Minimum down payment requirement of 3.5%
- Mortgage Insurance Premium (MIP) is required for every FHA loan
- Maximum debt to income ratio of 55% (Max DTI may very.
- The home must be the primary residence
- The borrower must have a 2-year total work history with steady income (Some exceptions)
FHA loans are loans from private lenders that are regulated and insured by the Federal Housing Administration (FHA) , a government agency. The FHA doesn’t lend the money directly, private lenders do.
FHA loans:
For borrowers with good credit and a medium (10-15 percent) down payment, FHA loans tend to be more expensive than conventional loans. For borrowers with lower credit scores or a smaller down payment, FHA loans can often be the cheapest option.
But there are no hard-and-fast rules—a lot depends on the current market. If you’re not sure, ask me for quotes for both options and compare total costs to see which offers the best overall deal.
Mortgage insurance is required for all FHA loans.
FHA loans:
- Allow for down payments as low as 3.5 percent.
- Allow lower credit scores than most conventional loans.
- Have a maximum loan amount that varies by county.
For borrowers with good credit and a medium (10-15 percent) down payment, FHA loans tend to be more expensive than conventional loans. For borrowers with lower credit scores or a smaller down payment, FHA loans can often be the cheapest option.
But there are no hard-and-fast rules—a lot depends on the current market. If you’re not sure, ask me for quotes for both options and compare total costs to see which offers the best overall deal.
Mortgage insurance is required for all FHA loans.
