FHA Loans

FHA Loans

What sets an FHA Loan apart from others?

A fantastic option for many buyers, including first-time homeowners, FHA Loans are insured by The Federal Housing Administration. Because of this, lenders are able to provide more competitive interest rates and closing costs, even for borrowers with lower credit scores.

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For traditional loans, one of the single most important factors for being approved is the borrower's credit score. Because credit scores are calculated based on payments made, debt, delinquency and other financial factors, there's oftentimes a minimum credit score that's non-negotiable.

While traditional loans consider credit score in its entirety, the underwriter for an FHA Loan looks over the past 12 to 24 months for payment history and other factors. If payment history is good, approval may be possible, even when other lenders have turned an applicant down. Similarly, for FHA Loans the borrowers are able to able to speak with the underwriter prior to approval so they can explain their situation, even if their credit is low, prior to the underwriting process.

When applying for an FHA (Federal Housing Administration) Loan, there are multiple factors to consider. One reason these loans are so attractive is because the borrower can put down as little as 3.5% of the sales price, which can oftentimes be split between the down payment and closing costs. However, it's worth noting that closing costs can oftentimes exceed this 3.5%, requiring more money up front -- reaching up to 6% or 8%.

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FHA Loans Types

  • FHA Energy-Efficient Mortgage

    Home buyers who are looking to make energy-efficient improvements have the opportunity to roll their costs into their mortgage.

  • FHA Reverse Mortgage

    Available to borrowers 62 and older, these insured loans allow homeowners to tap into the equity of their home in order to supplement their monthly income.

  • Land Owners

    Borrowers who own land and are looking to build a new home may qualify to take out a special FHA Loan.

  • Mobile Home Buyers

    FHA Loan options exist for borrowers looking to purchase a mobile home that will be located in a mobile home park.

Key Information
  • Lower Interest Rates
  • Reduced Closing Costs
  • Fewer Credit Restrictions
  • Variety of Housing Options

WILL I QUALIFY FOR AN FHA LOAN?

Interested in learning more about FHA Loans and whether or not one may be a good option for you? The Lending360 team is here to help answer all of your questions and craft a plan that's specially built around you. Just click the button to get started!

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