Recently, HUD (U.S. Department of Housing and Urban Development) assistant secretary and commissioner of the Federal Housing Administration (FHA) David Stevens announced that the agency will not be raising the minimum FHA borrowing score. Stevens stated that while the agency has been facing ongoing pressure to raise the minimum FICO score for FHA borrowers from the current 580 to 620, “that won’t happen†due to “the stabilizing and stimulating influence of the government†as being “indispensable.†FHA loans are federally assisted mortgage loans that are insured by the Federal Housing Administration. While the Administration does not issue the loans to the borrowers themselves, it will pay the approved lender if a borrower defaults on the loan.
FHA mortgage loans are a great option for those borrowers who may not meet some of the stricter lending criteria of conventional loans. FHA mortgage programs are offered through FHA approved lenders and are advantageous because FHA Mortgage Programs typically offer lower interest rates, require a smaller down payment of 3.5 percent of the value of the home (although proposed legislation would increase this down payment to 5 percent, read more about this here), and do not demand a perfect credit score or history.
Total Mortgage Services is a fully approved FHA lender and offers some of the best current FHA mortgage rates available. Call us today at 877-868-2503 to speak with one of our mortgage professionals and see if FHA is right for you.
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