FHA Loans

What Are FHA Loans?

FHA Loans are the most popular government-backed loan. These loans allow lower credit borrowers to get into a home with as little as 3.5% down. They are able to do this because of their mandatory upfront and monthly mortgage insurance. Recently the mortgage insurance has been lowered on these loans which make them a great option for many borrowers, not just those with lower credit. The trade-off is that these loans have lower interest rates than their conventional counterparts, so often your monthly payment in an FHA Loan is better with less than 20% down!

Why Choose FHA Loans?

Where FHA thrives is in its lenient guidelines. FHA Loans allow borrowers with a 580 credit score or better to put 3.5% down and a 520 score or better to put 10% down. Also, they allow for higher Debt-to-Income ratios than conventional does, allowing you to get more home. One other huge benefit is you are allowed to get 6% seller credit to help pay for the closing costs and rate buydowns.

FHA also has a few other unique benefits such as 203k loans which allow you to finance the rehab of a property. Also, they allow you to buy up to a 4-unit multifamily property as a primary residence and use the other units to help you qualify, this is commonly referred to as House-Hacking and it is a great way to build wealth through real estate.

FHA Loans

Ready to Get Started?

If you are ready to purchase a home with an FHA Loan or do an FHA Streamline refinance, reach out to our team here at Elev8 Mortgage and we will help you accomplish those goals.