FHA Loans are flexible loans backed or insured by the Federal Housing Administration HA to purchase primary homes. While the federal government insures these loans, they are underwritten by mortgage lenders, like The Mortgage Firm North Central Florida. FHA loans are known to benefit first-time homebuyers, but being a first-time homebuyer is not a requirement to qualify for this loan. First-time homebuyers with lower credit scores and higher income-to-debt ratios are typical candidates for FHA loans.
FHA loans also require a lower minimum down payment than many loan types, and buyers who qualify for an FHA loan can expect lower monthly interest rates as well as lower closing costs and mortgage insurance fees. For many homebuyers, an FHA loan is the most affordable mortgage option that meets all of their home-buying needs.
FHA loans offer 15 and 30-year terms and fixed interest rates but require the buyer to purchase and maintain FHA mortgage insurance, which protects the lender if the homebuyer defaults on their loan.
FHA Home Loan Details
- 600 minimum credit score
- Higher debt-to-income ratio
- Primary residence only
- Lower closing costs
- $472,030 max loan amount
- 3.5% down payment
- Mortgage insurance is required for the life of the loan