2023 FHA Loans
Pre-Qualify In Minutes - Low Rate Guarantee
FICO Requirement as low as 580
I am a local lender with surprisingly low rates (likely better than your credit union or large bank!)
Challenge situations no problem – we’ll close on time.
Learn More About Your FHA Loan!
FHA loans are a fantastic option for almost everyone looking to purchase their primary home.
An FHA loan is a type of mortgage that is insured by the Federal Housing Administration (FHA), a government agency. These loans are designed to make homeownership more accessible to first-time homebuyers and borrowers with lower credit scores or a limited down payment.
One of the main benefits of an FHA loan is that it requires a lower down payment than a conventional loan. While the exact amount will vary depending on the lender and the borrower’s credit score and income, an FHA loan typically requires a down payment of at least 3.5% of the purchase price of the home. This is compared to a conventional loan, which typically requires a down payment of 3% to 20%.
Why Choose FHA Loans
An FHA loan is a type of mortgage that is insured by the Federal Housing Administration (FHA), a government agency
These loans are designed to make homeownership more accessible to first-time homebuyers and borrowers with lower credit scores or a limited down payment.
One of the main benefits of an FHA loan is that it requires a lower down payment than a conventional loan.
While the exact amount will vary depending on the lender and the borrower’s credit score and income, an FHA loan typically requires a down payment of at least 3.5% of the purchase price of the home. This is compared to a conventional loan, which typically requires a down payment of 3% to 20%.
In addition to a lower down payment requirement
FHA loans have more flexible credit score requirements than conventional loans. While the exact credit score needed to qualify for an FHA loan will vary depending on the lender, a score of 580 or higher is generally considered the minimum for most FHA loans. However, it’s important to note that the higher your credit score, the better your chances of securing a lower interest rate and more favorable terms on your loan.
Another advantage of an FHA loan is that it allows for a higher debt-to-income ratio (DTI) than a conventional loan.
DTI is a measure of how much of your monthly income goes towards paying off debts, including your mortgage, credit card payments, and other loans. Most lenders prefer a DTI ratio of 43% or lower, but FHA loans may allow for a higher ratio, depending on the lender and the borrower’s circumstances.
Now that we’ve covered some of the basic details of an FHA loan, let’s discuss the pros and cons of this type of mortgage.
However, there are also some drawbacks to consider when it comes to an FHA loan.
One of the major benefits
FHA loan is that it requires a lower down payment than a conventional loan. This can make homeownership more accessible for borrowers who don’t have a large down payment saved up or who may be struggling to come up with the money to cover closing costs.
Another advantage of an FHA loan
It has more flexible credit score requirements than a conventional loan. This can be especially helpful for first-time homebuyers who may not have a long credit history or who may have had credit issues in the past.
Another potential drawback
FHA loan is that it may require a higher interest rate than a conventional loan. This is because the FHA assumes more risk by insuring the loan, which means that lenders may charge a higher rate to compensate for this added risk.
In summary
In summary, an FHA loan is a type of mortgage that is insured by the government and designed to make homeownership more accessible to first-time homebuyers and borrowers with lower credit scores or a limited down payment. While it has some advantages, such
All information contained herein is for informational purposes only and, while every effort has been made to ensure accuracy, no guarantee is expressed or implied. Any programs shown do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions apply. PURSUANT TO THE REQUIREMENTS OF SECTION 157.007 OF THE MORTGAGE BANKER REGISTRATION AND RESIDENTIAL MORTGAGE LOAN ORIGINATOR ACT, CHAPTER 157, TEXAS FINANCE CODE, YOU ARE HEREBY NOTIFIED OF THE FOLLOWING: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE, SIGN AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE DOWNLOADED AND PRINTED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENTS WEB SITE AT WWW.SML.TEXAS.GOV.Copyright © 2022 American Pacific Mortgage Corporation. NMLS #1850