FHA Loan

An FHA home loan is a mortgage insured by the Federal Housing Administration (FHA). It’s designed for low-to-moderate income borrowers, and requires a lower minimum down payment. If you have a lower credit score, this may be a great choice over a conventional loan. FHA loans are a great way to begin that journey to homeownership.

FHA loan requirements:

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Credit scores and down payments

Credit scores below 580: 10% down payment required
Credit score above 580: 3.5% down payment required

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Legal resident of the United States

Must be over the age of 18 with valid Social Security number

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Steady income and proof of employment

With current employer for at least 2 years

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Low debt-to-income ratio

Debt-to-income ratio less than 43%

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Mortgage Insurance Premium required

FHA loan features:

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Downpayment as low as 3.5%

For credit scores below 580, a 10% down payment is required

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More lenient credit restrictions than conventional loans

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Gift funds accepted for down payment and closing costs

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Refinance options

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Fixed-rate and adjustable-rate mortgage (ARM) options available

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Flexible qualification guidelines

Some of the above conditions can be worked around to still qualify with higher interest rates or down payment options

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203(k) renovation loan option

Buy a fixer-upper and get financing for both the home and the repairs. A 203(k) renovation loan, sometimes called a renovation or rehab loan or a FHA construction loan, allows you to finance a home and necessary repairs in one transaction. A minimum credit score of 620 might be required, which is similar to the qualifications for a conventional loan.

Is an FHA loan right for you?

If you have lower credit and a small down payment, an FHA loan might be your cheapest option. Here are other scenarios to help you determine if an FHA loan is right for you:

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You're a first-time homebuyer

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You're currently renting and want to purchase a home

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You're a buyer with a lower credit score

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You want a small down payment option

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You want to refinance a high-cost mortgage

Why choose SecurityNational Mortgage for your FHA loan?

We’re experts with deep experience in underwriting, processing, and closing on FHA loans. Let our professionals guide you through the experience!

This is not a commitment to make a loan, nor should it be construed as lending advice. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over life of loan. Reduction in payments may reflect longer loan term. Terms of the loan may be subject to payment of points and fees by the applicant. SecurityNational Mortgage Company is an Equal Housing Lender NMLS# 3116.

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