FHA Loan
- An FHA home loan is a government-backed mortgage program that gives you financial flexibility when buying a home. These mortgages benefit first-time homebuyers in that you can have a non-occupant, like a parent or relative, be a co-applicant on the loan with you. Your down payment can also be as low as 3.5% of the purchase price and the option for the seller to contribute up to 6% of the sale price is also available.
FHA home loans are insured by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). These home do loans require mortgage insurance to protect lenders against losses that result from defaults on home mortgages, but you’ll be able to finance the upfront mortgage insurance premium into your loan. You will also be responsible for paying an annual premium.
Requirements for an FHA Home Loan are as follows:
- You must have a down payment of at least 3.5%.
- Your total monthly mortgage payment must not exceed 30% of your gross monthly income.
- You must have consistent employment for at least two consecutive years and verifiable income.
An FHA home loan may be used to purchase or refinance. Eligible properties include:
- A family home with 1–4 units
- A condominium unit
- A manufactured housing unit (must be on a permanent foundation)
To get pre-approved for a FHA mortgage for a purchase or refinance, please click the Get Approved button below. Still have some questions? Call your licensed Approved Mortgage Solutions mortgage broker at the phone number below or Contact Us and we’ll reach out to you.