What is an FHA Mortgage?
An FHA mortgage is insured against default by the Federal Housing Administration. That means these loans have less stringent requirements than the kind you might get from traditional financing sources.
Originally, FHA loans were created for first-time and lower-income homebuyers. Ever since the credit bubble burst in 2006, however, FHA mortgages have become popular across all income levels. Now, they account for over a quarter of all new purchase mortgages.
What are the benefits of an FHA mortgage?
- Down payments start as low as 3.5% of the purchase price of the home.
- You can qualify for maximum financing with a credit score as low as 580.
- No closing-cost options are available.
- Current FHA mortgage holders can qualify for an FHA Streamline refinance with no new home appraisal or income verification.
- 3.5% minimum down payment for most borrowers
- Steady employment history or at least 2 years with current employer
- Minimum credit score of 580 or higher in some cases no credit score at all
- No bankruptcies within the past two years, with good credit since then
- No foreclosures within the past three years, with no 30 day late payments since then
- New mortgage payment should be approximately 30% or less of your gross income
Why choose Total Mortgage?
We’re fantastic at what we do, and all we do is mortgages. We can promise that:
- We have some of the lowest FHA mortgage rates in the country.
- We’ll close your loan in 30 days or less or we’ll pay your first mortgage payment.*
- Our mortgage experts will educate you as you move through our process, so you’re not left with questions.
Ready to take a closer look at your FHA options? Call us or fill out the form on the right to talk with an FHA expert.
*Terms and Conditions apply, click here for complete details.