FHA Loan

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The FHA loan is a great product with unique features for those looking to purchase or refinance a home.

The FHA Loan

The FHA loan is insured by the Federal Housing Administration and has flexible lending requirements. It is a great product for those with limited down payment or previous credit challenges.

Benefits

Flexible Underwriting

Lower down payments

Favorable terms

Details

Loan Limits

$331,760 – $517,500

The limits on an FHA loan differ by county.

Loan to Value

Up to 96.5%

The FHA loan can be used to finance up to 96.5% of the home’s appraised value, meaning a minimum down payment of 3.5% is required.

Credit Score

640 or higher

The minimum credit score is 640. If your credit score is on the lower end, you may need a larger down payment.

Terms

Fixed: 15, 30

The terms of the FHA loan is more limited than a conventional loan, but there are still options to find something that works for you.

Mortgage Insurance

.45% – 1.05%

Annual mortgage insurance is dependent on the loan term, loan amount, and initial loan-to-value ratio.

Funding Fee

1.75%

The upfront funding fee is 1.75% of the loan and can be rolled into the financed loan amount.

Additional Details

The FHA loan can be done for purchase transactions, rate/term and cash-out refinances. This loan allows for higher debt-to-income ratios than traditional financing allow.

The monthly mortgage insurance is required and will remain on the loan for the term of the mortgage.