fha loan; fha loans; requirements for fha loans

30-Year Fixed-Rate

FHA Loan

easier requirements for an easier experience

Insured by the Federal Housing Administration, FHA loans are perfect for first-time buyers ready to start their journey as homeowners. With lower down payment and credit score requirements, they make homeownership more accessible and more affordable.

The Benefits

A steady rate

Because of its fixed rate, a 30-Year FHA Loan won’t be affected by economic changes.

Easier requirements

FHA Loans allow lower credit scores, smaller down payments (as low as 3.5 percent), cheaper closing costs, and more.

Lower interest rates

Because FHA Loans are insured by the government, their level of risk is lower – and so are their interest rates.

No income limits

There are no minimum or maximum income requirements for FHA Loans, making them a smart choice for new and repeat buyers.

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mortgage FAQs

Everything you need to know about 30-Year FHA Loans

What are the requirements of a 30-Year FHA Loan?

To qualify for a 30-Year FHA Loan, you’ll need to make a down payment of at least 3.5 percent of the total loan amount. Additionally, you’ll need a credit score of at least 580 to qualify for a 30-Year FHA Loan. A debt-to-income (DTI) ratio below 43 percent is also favorable, but this may be flexible based on your unique situation. Work with a dedicated loan expert to learn more.

Your recent financial history will also be important when you apply for a 30-Year FHA Loan. You should have a steady employment history, no bankruptcies in the last two years, and no foreclosures in the last three years. Find a loan expert near you for full details.

What’s the difference between an FHA Loan and a Conventional Mortgage?

The short answer? Government backing. While FHA loans are insured by the Federal Housing Administration, conventional mortgages are not. This results in a few key differences:

  • FHA Loans are backed by the government and present less risk to lenders. Because of this, these loans have more lenient requirements and are available to borrowers who would otherwise be less eligible for a mortgage. Lower interest rates, cheaper fees, and more are all possible because lenders are protected if a borrower defaults on their FHA loan.
  • Conventional Mortgages are not backed by the government and present more risk to lenders. This means that if a borrower fails to repay their loan, the lender will be responsible for recovering the cost (which could result in a home foreclosure). As a result, lenders often look for only the most qualified borrowers when issuing conventional mortgages.

Learn more about the differences between FHA and Conventional Loans with our online Purchase Calculator.

Is a 30-Year FHA Loan right for me?

If you’re looking to buy your first home on a budget or with a lower credit score, a 30-Year FHA Loan could be a great option for you. With a longer loan term, cheaper down payment, and lower credit score requirement, FHA loans are generally more affordable and easier to qualify for. Check your loan eligibility or try our easy Mortgage Builder for free today.

How can I prepare for a 30-Year FHA Loan?

The best way to prepare for a 30-Year FHA Loan is to ensure that your recent financial history is in good standing. If necessary, work on improving your credit so that it’s at least 580 and save for a down payment of at least 3.5 percent of the total loan amount. Just because your down payment will be smaller doesn’t mean it won’t be challenging to balance your loan costs with pre-existing debt.

If you have any questions about preparing for an FHA loan, Total Mortgage experts are available to help. Find a loan expert near you for a personalized mortgage experience.

Can I get an FHA Loan if I’ve been bankrupt or had a home foreclosure before?

Yes! Even with a history of bankruptcies or foreclosures, homeownership is still possible for eligible borrowers with FHA loans. However, you shouldn’t have any bankruptcies in the last two years or any foreclosures in the last three years.

Every loan situation is different – and Total Mortgage is dedicated to finding the right solution for your needs. Check your loan eligibility today to find your best path forward.

Jump start your home search with a 30-Year FHA Loan.

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