How do you purchase a home with a low down payment and affordable rates if you do not have a perfect credit score?
For many homebuyers, the answer is an FHA mortgage,
What is an FHA Loan?
An FHA mortgage is a type of home loan backed by the Federal Housing Administration.
By guaranteeing your mortgage, the FHA reduces the associated risk so that lenders can relax their qualification requirements and offer great benefits.
You can use an FHA loan to purchase a home, construct a home, renovate a home, refinance at home, or consolidate debts.
Qualify Easily for Competitive Benefits
With a Kentucky or Florida FHA Loan
- Homebuyers without perfect credit can qualify for all of the advantages of an FHA mortgage.
- Down payments for FHA loans can be as low as 3.5%, making homeownership accessible and affordable.
- The closing costs for an FHA mortgage are capped. Sometimes, you may not have to pay any closing costs.
- When you apply for an FHA loan, you can choose a suitable loan term as well as a fixed or adjustable mortgage rate.
What are the Requirements for an FHA
Mortgage in Louisville, Cape Coral,
You can qualify for an FHA loan as a first time homebuyer or as a returning homebuyer.
Here are the basic requirements:
- A credit score between 500 and 579 is necessary to qualify for a 10% down payment. If you want to put just 3.5% down on a home, you can do so if your credit score is 580 or more.
- A 43%-45% debt-to-income ratio will help you qualify for an FHA mortgage.
- As with other types of home loans, you need to show two years of steady employment through appropriate documentation.
- You must have a clear Credit Alert Verification Reporting System (CAIVRS) record.
- Have you previously declared bankruptcy? If so, you must wait for the 12 to 24 month waiting period to elapse before applying for an FHA mortgage.
- Do you have a foreclosure in your past? If so, you will need to wait until the three year waiting period has passed.
- You may only use an FHA loan to purchase a primary residence. Allowable types of homes include single-family homes, 2-4 unit multifamily homes, and HUD-approved condos. Whichever type of home you are purchasing, it must be on a permanent foundation. Construction must have been completed on or after June 15th, 1976.
Apply for an FHA Mortgage Now and
Buy a Home With 3.5% Down
During your consultation, we can discuss the requirements above with you in detail. We also can review the specifics of your scenario to help you decide whether an FHA mortgage is right for you.