FHA Loans
Consolidate Multiple Loans
Easily combine first and second mortgages into one low rate.
Easier Credit Qualification
Even credit scores in the 500s can qualify.
Low Equity Requirements
Down payment as low as 3.5% on purchases; even less required for refinance.
What is an FHA Loan?
FHA stands for the Federal Housing Administration. The FHA was created to help increase home-ownership in the United States by encouraging lenders to lend to more people who were traditionally considered higher risk borrowers. FHA encourages lenders to do this by requiring a mortgage insurance premium on nearly every loan.
FHA then takes those premiums and pools them together. If a borrower defaults, the pool pays out to the lender to help cover any losses. Its a win-win situation for everyone! The lender is protected, good borrowers who were previously boxed out of loans have easier times qualifying, and home ownership rates in the country have an opportunity to improve.
Benefits of an FHA Loan
- Less stringent qualification and credit requirements
- Very low home equity requirements
- Only 3.5% Down Payment Required for Purchases
- Fast and Easy Streamline Refinance available if you already have an FHA loan
FHA Loan Qualification Requirements
- Lower credit score requirements or even no credit score required
- Refinance up to 97.75% of your primary home’s value
- Buy a home with as little as 3.5% down (primary home)
How an FHA Loan Works
- Your actual payment will vary based on your situation and the current interest rates when you apply
- Prepay your mortgage at any time without pre-payment penalties
- 30-, 25-, 20- and 15-year terms are all available with fixed rates
- 5-year adjustable-rate mortgage available