Enjoy less rigorous lending standards, lower down-payments, and a better lending experience when you have a devoted Priority Financial Network loan officer to help you navigate this interesting mortgage product.
If you are unfamiliar with this particular loan type, a FHA Loan is one that is insured by the Federal Housing Administration, a part of the Department of Housing and Urban Development. When borrowers secure a loan, the FHA pays for mortgage insurance, which protects the lender if the loan defaults. FHA borrowers can use their own savings for the down payment, or they can use alternative down payment sources. These would include monetary gifts, a grant from a local government Down Payment Assistance program, or from the state. Because of the regulations governing FHA loans, our loan officers can be more flexible in the qualification process and offer a great interest rate on approval.
A mortgage with a down payment as low as 3.5% requires the borrower to have a credit score of 580 or higher.
A mortgage of 10% requires credit scores between 500 and 579.
Those with credit scores under 500 are typically ineligible for FHA loans.
Don’t give up on applying for a FHA Loan due to having lower-than-average credit; the Federal Housing Administration can make exceptions under certain circumstances. A nontraditional credit history or insufficient credit doesn’t have to hold you back from getting the money you need to buy the home you want.
Advantages of an FHA
Because the FHA is an insurer, not a lender, borrowers need to get their loan through an FHA-Approved lender, such as Priority Financial Network. Schedule your free FHA loans consultation by calling us at (818) 936-3888 today.