FHA

FHA Loans

Unisource Mortgage Services, Inc.

The Federal Housing Administration, or FHA, insures mortgages made by FHA-approved lenders. In the United States and its territories, FHA guarantees these loans on single-family and multi-family homes. It is the world's largest insurer of residential mortgages, having insured tens of millions of properties since its inception in 1934.

These loans were made for first-time homebuyers and are backed by the Federal Housing Administration. They are usually easier to get than traditional loans, with lower credit scores and more debt-to-income ratios allowed. As little as 3.5% down is required for FHA home loans, but they also require an upfront mortgage insurance fee that can be paid with the loan, and monthly mortgage insurance. These fees can be paid with the loan. The amount of the down payment and the length of the loan affect how much you pay at the start and how much each month. There must be at least a 3.5 percent down payment for these rates to apply. They are currently at 1.75 percent for the front premium and 0.85 percent for the monthly mortgage insurance premium.

Benefits Of FHA Loans

  • Borrowers with poor or no credit who are unable to obtain traditional loans may qualify for an FHA loan.
  • Lower down payment requirements.
  • Less than perfect credit is not disqualifying
  • Credit that is less than perfect is not a disqualifying factor.

Frequently Asked Questions

  • What is a FHA loan and who qualifies?

    An FHA loan is a government-backed mortgage that allows you to purchase a home with less stringent financial standards. If you have debt or a low credit score, you may be eligible for an FHA loan. Even if you have a bankruptcy or other financial issue on your record, you might be able to acquire an FHA loan.

  • What are the disadvantages of a FHA loan?

    The biggest downside of FHA loans is that borrowers who put down less than 3.5 percent must pay mortgage insurance costs for the life of the loan. FHA borrowers can only get rid of their mortgage insurance by refinancing into a different loan type.

  • How hard is it to get a FHA loan?

    You'll need a 3.5 percent down payment, a 580 credit score, and a 43 percent DTI ratio to qualify for an FHA loan. A conventional mortgage is more difficult to obtain than an FHA loan. The Federal Housing Administration (FHA) offers a variety of home loan options, including loans for house upgrades.

  • Is FHA only for first-time buyers?

    FHA loans aren't just for first-time homebuyers. FHA mortgages are available to both first-time and repeat home buyers. Because of its low down payment requirements, the FHA loan is frequently marketed as a product for "first-time purchasers."

Use our online application to quickly get prequalified for your loan.

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