FHA Home Loans

Looking for a new home and not sure which mortgage is best? Look no further than FHA loans! With their low down payments and reasonable rates, FHA loans offer an enticing option for homebuyers. But that's not all – they also come with a plethora of perks that could be just the right fit for your individual needs.

  • The min down payment for an FHA loan is 3.5% of the home's price. A larger down payment can lower the monthly payment & interest paid over the life of the loan.

  • An appraisal is required for an FHA loan to determine the value of the home being purchased. The appraisal is typically conducted by a licensed appraiser and the cost is generally paid for by the borrower. The appraisal helps ’s value.

  • FHA loans are made to help people with lower credit scores get a mortgage. You generally need a credit score of at least 580 to get approved for an FHA loan. But if your score is between 500 and 579, you may still qualify for an FHA loan if you can make a bigger down payment.

  • An FHA loan has a special fee called the funding fee. Borrowers pay this fee to support the FHA program. It's usually 1.75% of the loan amount and can be added to the loan or paid upfront.

  • FHA loans have limits on how much you can borrow. They can change depending on where you want to buy a home. For most places, the maximum loan amount for a one-family house is $472,030 in 2023, but it can be more if you're buying in an expensive area. If you're looking at multi-unit properties like duplexes or triplexes, the maximum loan amounts are higher.

  • FHA loans require mortgage insurance to protect lenders if borrowers fail to pay. The cost varies based on loan amount, length, and down payment. MIP is paid upfront and annually as part of the mortgage payment. Borrowers should factor in this expense when choosing an FHA loan.