FHA

FHA financing is one of the main sources of financing for first time and non-first time home buyers.

With a 3.5% down minimum down payment, the ability to have more than one non-occupying co-borrower, the ability to borrow some or all of the down payment and the low credit score requirements, many people that thought they could not purchase actually can. We are one of the few that offer an FHA loan with a credit score as low as 500 (with a larger down payment).

How FHA Loans Work

The Federal Housing Administration (FHA) does not actually make loans, it insures loans. This insurance removes or minimizes the default risk lenders face when buyers put down less than 20 percent. Without further approval from FHA, its approved lenders are authorized to:

  • Take loan applications
  • Process loan applications
  • Underwrite and close the loan

FHA Loans Allow a Blemished Credit History

If your credit is less than perfect, FHA might be the loan for you. You may qualify for an FHA loan even though you have had financial problems.

  • FICO scores can be lower than those for a conventional loan.
  • Bankruptcy. You can obtain an FHA loan two to three years from the date of your bankruptcy discharge, as long as you’ve maintained good credit since your debts were discharged.
  • Foreclosure. If you keep your credit in excellent shape since a foreclosure, an FHA loan will be available to you two to three years from the final date of your foreclosure.

FHA loans are available to anybody but are used most often by first-time home buyers and low- to moderate-income buyers. However, there are no income limit qualifications.