With FHA home loans, people qualify with credit scores of 580 or higher along with down payments being as low as 3.5%. This makes these loans more accessible than most mortgages.
The FHA (Federal Housing Administration) protects lenders from defaults on payments. Every loan is insured by the FHA. This allows it to be easier for you to qualify and for lenders to offer lower interest rates.
The FHA loan option is designed for people that have credit scores of 580 or higher while also having a 3.5% down payment. These loans are the most accessible than all of the other ones offered. Check out the other benefits of the FHA loans down below.
Minimum FICO Score of 580
A minimum 3.5% down payment
A debt-to-income ratio (DTI) of maximum 50% and a consistent and sturdy employment history. Simply add your monthly debt payments and divide by your gross monthly income.
Usually 1.75% of your loan amount upfront
Money to cover closing costs. Between 2%-6% of the purchase price.
Credit score requirements are much lower compared to other loans
You may still be able to still qualify for an FHA loan if you’ve had a bankruptcy or other financial issues in the past.
Fixed or adjustable rates and for 30-15 year terms are available with these loans.
Low down payment rates as little as 3.5%
If you are thinking about refinancing, the FHA loan has great benefits as well.
Closing costs can be tied into your loan.
You can refinance with an FHA Streamline if you have a loan already.
Your loan cant exceed the loan amount limits in your area. *Link - Look up the loan limits in your area*
The property must meet the FHA minimum property standards down below.
Safety - home shouldn’t impact the health and safety of the individuals that live there.
Security - home must be secured.
Soundness - home shouldn’t have problems with the structural integrity.
In terms of purchasing a home, you’ll need to move into the home within 60 days of closing.
It must be your main residence.
Tampa Bay Home Mortgage is ready and willing to provide quality service to those in need. We treat each need in accordance to the person and their needs. Get started today and fill out an FHA loan application form online. Choose us now!