An FHA Loan is one that is insured by the Federal Housing Administration
Enjoy less rigorous lending standards, lower down payments, and a better lending experience when you have a devoted CountryFirst Mortgage loan officer to help you navigate this mortgage product.
If you are unfamiliar with this particular type of loan, an FHA loan is one that is insured by the Federal Housing Administration (part of the Department of Housing and Urban Development). When borrowers secure a loan, the FHA pays for mortgage insurance, which protects the lender if the loan defaults. FHA borrowers can use their own savings for the down payment or they can use alternative down payment sources, including monetary gifts and grants from state and local government down payment assistance programs or from the state. Because of the regulations governing FHA loans, our loan officers can be more flexible in the qualification process and can offer a great interest rate on approval.
A mortgage with a down payment as low as 3.5% requires the borrower to have a credit score of 580 or higher.
A mortgage with a down payment of 10% requires a credit score between 500 and 579.
Those with credit scores under 500 are typically ineligible for FHA loans.
Don’t give up on applying for an FHA loan due to having lower-than-average credit; the Federal Housing Administration can make exceptions under certain circumstances. A nontraditional credit history or insufficient credit doesn’t have to hold you back from getting the money you need to buy the home you want.
Advantages of an FHA
Because the FHA is an insurer and not a lender, borrowers need to get their loan through an FHA-approved lender, such as CountryFirst Mortgage. Schedule your free FHA loan consultation by calling us at (602) 774-0990 today.