FHA Home Loans
What is an FHA Home Loan?
An FHA home loan is a mortgage that is insured by the Federal Housing Administration (FHA). The FHA was created in 1934 to help people purchase homes when the housing market crashed. The loan product is designed for low-to-moderate-income borrowers and offers more flexible lending requirements than conventional home loans.
Additionally, FHA loans include paying two types of mortgage insurance premiums: Up Front Mortgage Insurance Premium (UFMIP) which the borrower can pay as a lump sum in cash or include it in the loan amount, and an Annual MIP which is included as part of their monthly payment.
Who Qualifies for an FHA Home Loan?
Anyone can apply for an FHA home loan, even if they do not have perfect credit. Borrowers with a credit score of 580 or above may qualify for an FHA home loan with as little as 3.5% down. The mortgage lender will want to see that you have a steady income and employment history. Your debt-to-income (DTI) ratio typically should be no more than 43% of your monthly income, however the program does allow for a maximum ratio of 57% depending on your credit score, monthly income, and down payment amount. The mortgage lender will want to see that you have a steady income and employment history.
How to Get an FHA Home Loan?
To get an FHA home loan, borrowers must first fill out a loan application and submit it to a lender for approval. Borrowers will also need to provide the following documents:
Home must be owner occupied
Proof of two years employment and income
Tax returns and W2's
ID (driver's license, passport, etc.)
FHA Home Loan Required Documents
Stay within FHA loan limits for the county the property is located. Click here to see your limit.
An FHA home loan is a great option for borrowers who want to buy a home but have less-than-perfect credit or who do not have a large down payment saved. If you're considering a FHA home loan, be sure to contact Onshore Mortgage to learn more about the process and how to qualify.
Benefits of FHA Loans?
There are many benefits associated with getting an FHA loan, including:
Allowing more people access to homeownership by allowing for smaller down payments.
Help homebuyers with lower credit scores qualify for a loan
Multiple loan terms available: 30-year fixed-rate, 15-year, etc.
Available on 1-4 family properties.
If you're considering a FHA home loan, be sure to contact Onshore Mortgage to learn more about the process and how to qualify.
*Credit and income restrictions do apply. Please visit our Disclosures page for a detailed breakdown of all loan types.