What Is An FHA Mortgage Loan & Who Is Eligible?
An FHA mortgage loan is insured by the Federal Housing Administration, but issued by private lenders. The FHA loan insurance protects the lender in case the borrower defaults, which means that lenders feel more confident lending to people with lower credit scores or with a smaller down payment. You can use an FHA loan to buy or refinance your home or condo, pay for renovations and other specialized FHA loans can even pay for energy-efficiency upgrades.
It’s often easier to qualify for an FHA loan than a conventional mortgage, and if you’ve been concerned about whether you qualify for a mortgage because of your credit score or debt-to-income ratio, an FHA loan may be for you! Continue reading to learn more and contact our mortgage company in St. George or Mesquite for a free consultation.
Like any loan, FHA mortgage loans have specific requirements that you must meet before the lender allows you to borrow money. These are a few of the FHA requirements, and if you contact us, our mortgage company professionals can help you better understand the eligibility requirements.
If your credit score is lower than the requirements for a conventional loan, you may be eligible for an FHA mortgage loan. The requirements are lower, so if your credit score is 500 or higher you may qualify
Minimum Down Payment
The minimum down payment is based on your credit score, but is often much lower than for conventional loans, usually between 3.5% and 10%.
Your debt-to-income ratio is one of the factors lenders take into account when determining what type of home loan you qualify for. With both FHA and conventional mortgage, your monthly debt payments can be up to 50% of your pretax income. For all loans, you should be able to show that you have a stable income and are able to pay your mortgage on a monthly basis.
Because an FHA mortgage loan is a government-backed loan, there are specific rules pertaining to FHA mortgages that differ from private insurance on a conventional loan. Contact Patriot Home Mortgage to learn more.
You will need a valid social security number, be old enough to sign a mortgage, and provide proof of U.S. citizenship, evidence of legal permanent residency, or eligibility to work in the United States.
Patriot Home Mortgage FHA Loan
We’re proud to help members of our community find the mortgage that lets them move into the home of their dreams, including FHA loans, because we’re committed to helping you find the right loan so that you can live better! Whether you’re looking for a conventional mortgage, a VA loan, USDA loan, jumbo loan, or more, we’re here to help you find the loan that meets your needs! Our mortgage company has offices in St. George and Mesquite. Follow our blog to learn more, and contact us today to get a free consultation and start the mortgage application process.