An FHA Loan is a mortgage that’s insured by the Federal Housing Administration (FHA) and issued by an FHA approved lender. They allow borrowers to finance homes with down payments as low as 3.5% and are especially popular with first-time homebuyers.
who qualifies for fha loans?
- FICO® score at least 580 = 3.5% down payment.
- FICO® score between 500 and 579 = 10% down payment.
- MIP (Mortgage Insurance Premium ) is required.
- Debt-to-Income Ratio < 43%.
- The home must be the borrower’s primary residence.
- Borrower must have steady income and proof of employment.
Benefits of an fha loan:
- More flexible qualification requirements than other home loan types
- Down payments as low as 3.5%
- Friendlier debt ratios
- Credit scores as low as 500
All loans subject to underwriter approval; terms and conditions may apply. Subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.