"Backed by the Federal Housing Administration (FHA), this type of mortgage helps first-time and moderate-income buyers qualify for homeownership with flexible credit requirements and a lower down payment. Because of this protection, lenders can offer more flexible qualification standards, such as: Lower credit score requirements (often as low as 580 for many borrowers) Down payments starting at just 3.5% Higher debt-to-income (DTI) limits than conventional loans."
"You'll start by applying for pre-approval with an FHA-approved lender. They'll review your credit score, income, and debt-to-income ratio to determine your eligibility and loan amount. Make a low down payment: Most borrowers only need to put down 3.5% of the purchase price if they have a credit score of 580 or higher. Borrowers with lower credit scores (between 500 and 579) may qualify with a 10% down payment."
An FHA loan is a mortgage insured by the Federal Housing Administration that helps first-time and moderate-income buyers qualify for homeownership with lower down payments and flexible credit standards. Borrowers with credit scores of 580 or higher can typically make a 3.5% down payment, while those with scores between 500 and 579 may qualify with a 10% down payment. Applicants work with FHA-approved private lenders for pre-approval, underwriting, and payments. All FHA loans require mortgage insurance premiums, including a 1.75% upfront MIP often rolled into the loan and an annual MIP paid monthly. Higher debt-to-income allowances and relaxed credit rules increase access to mortgages.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
Unable to calculate read time
Collection
[
|
...
]