• Federal Housing Administration - FHA Loans

    FHA loans are meant for first time home buyers for a low entry point of down payment or lower credit scores.  We do offer loans down to 580 credit scores for FHA loans.  Our debt to income ratios are higher than most banks and lenders which make us a more attractive option if you want to qualify for a higher sales price.  FHA is easier to qualify than conventional loans and there is also an up front funding fee as well as monthly mortgage insurance for the life of the loan.

    FHA Loans require 3.5% down and have a funding fee as well as county loan limits around $325,000 (depending on your county) and funding fees are 1.75% of the loan amount.  There is also PMI which is monthly mortgage insurance the factor is .80 or .85 depending on credit score and down payment this can be adjusted a little bit.  PMI is for the life of the loan and can be refinanced later on into a conventional if credit or other issues improve.

    Credit Score Driven:  

    580-600 credit scores are closable.  This type of file will require more assets such as a substantial amount of their own funds in a checking, savings or 401K.  A long term work history at one place of employment is always helpful and 12 clean months of on time payments.  These scores are not favorable to close but can be done if direction is followed.

    600-620 credits are also closable and better than under 600.  This is the same as above in terms of 12 clean months and employment history.  More assets from your own funds will always help get an approval easier.

    620-800 credit scores are best for FHA loans.  There is virtually uncapped debt to income ratios on this option with a 620 plus credit score and high likelihood approval of anyone so long as there is a 12 month clean credit history and no major issues that require waiting time line requirements for purchase again.