FHA Loans

FHA insured mortgages offer many benefits and protections that only come with FHA.  Unlike traditional loan programs, FHA loans are specially designed to provide buyers who might not otherwise qualify for a home with a chance to purchase one. An FHA insured mortgage may be used to purchase or refinance a new or existing 1-4 family home, a condominium unit or a manufactured housing unit (provided the manufactured housing unit is on a permanent foundation). Additionally, some of the benefits of FHA include:

Low Down Payment: 

FHA loans have a low 3.5% down payment. The money can come from a family member, employer or charitable organization as a gift. Other loan types do not allow this.

Less Cost: 

FHA loans have competitive interest rates because the Federal government insures the loans.  Mortgage seekers should always compare an FHA loan with other loan programs.

Easier Qualification:

Because FHA insures your mortgage; lenders may be more willing to give loan terms that make it easier for qualification.

Credit Scores Can Be Lower:

A perfect credit score is not necessary to receive an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it is easier for you to qualify for an FHA loan than a conventional loan.

Helps You Keep Your Home:

Should hard times be encountered after buying a home, FHA has many options to help keep you in your home and avoid foreclosure.

Qualification for an FHA loan is a fairly straightforward process, and the requirements are not stringent. In general, to qualify you must:

  • Have a steady or increasing income for the last two years.
  • Have made less than two late payments for all your debt in the last two years. Each late payment should be less than thirty days late.
  • Have not declared bankruptcy in the last two years.
  • Have not had a foreclosure in the past three years.
  • Be prepared for a new mortgage payment from the FHA program, which is approximately 30% of your gross income.

Lastly, please note there are many local and State government programs available that use HUD and/or non-HUD funds to provide grants for the down payment or to help pay closing costs.

For more information, please feel free to contact us by clicking here, email us at amdirect@alliedmg.com or call: (800)862.5543.