FHA

An FHA loan is a type of mortgage insured by the Federal Housing Administration that may let you make a down payment as low as 3.5% and that has less-restrictive credit requirements than many conventional home loans. You can use FHA loans to buy a home, refinance your mortgage or renovate a home.

What are the requirements for an FHA loan?

When you apply for an FHA loan, the lending process will vary based on your credit scores and down payment amount.

To qualify for an FHA loan, you must meet these rules.

• Minimum credit scores — You’ll need minimum credit scores of at least 580 to qualify for a loan with a 3.5% down payment. You’ll need minimum credit scores of 500 to qualify for one with a 10% down payment.
• Mortgage type — You’ll also need to buy, refinance or renovate a home with between one and four units and plan to use the residence as your primary home.
• Debt–to-income ratio — Your total monthly debt payments, including any mortgage, typically can’t be more than 43% of your gross income.
• Financials — We can help you verify your credit and income as well as the value of the property you want to purchase.