FHA Loans were designed with the first time homebuyer in mind and are mortgage loans insured by the Federal Housing Administration. They are generally easier to qualify for than conventional financing, allowing lower credit scores and higher debt-to-income ratios. FHA home loans require as little as 3.5% down but require an upfront mortgage insurance premium that can be financed with the loan, and monthly mortgage insurance. The up-front and monthly rates vary depending on down payment amount and loan term. With the minimum down payment of 3.5%, these rates are currently at 1.75% for the front premium, and 0.85% for the monthly mortgage insurance.
Advantages of FHA Loans
Who Can Benefit?
Borrowers with lower or no credit scores who can’t qualify for conventional loans.
Borrowers who can’t pay 5% minimum down payment. A lot of first-time home buyers.
Someone who wants to buy multifamily homes and owner occupy one unit with low down payment.
Clients who can’t qualify with debt to income and need a non-owner occupied co-borrower.
FHA Home Loans
Very recently HUD dropped the monthly mortgage insurance premiums from 1.35% annually, to 0.85% for 30 years fixed FHA Home Loans. With this change, or if rates ever drop to the benefit of the home-buyer, an FHA Loans can be easily refinanced through the Streamline Refinance option. USA Mortgage has many options for a simple FHA streamline refinance that do not require the borrower to credit qualify, or require a new appraisal.
USA Mortgage Advantage
Full-service Mortgage Lender serving Missouri and surrounding states.
In-house processing, underwriting and funding.
Accepts some lower and no credit scores for these loans.
Offers competitive mortgage rates and fees.
Apply for FHA Loans
USA Mortgage is an FHA Loan lender with local offices throughout Missouri, Arkansas, Illinois, and nearby areas. Here at the Abadi Region, We have all the resources needed to make your dream a reality. Are you ready to move forward with your next home purchase? One of our experienced mortgage professionals will guide you every step of the way. Apply now and find out if you qualify for an FHA home loan.
FAQs about FHA Home Loans
FHA is a home loan backed by the government that has flexible requirements as far as allowing a lower credit score along with no income limits. The maximum loan amount for 2023 for FHA is $472,030.
FHA is for all types of homebuyers whether you are a first-time homebuyer or a non-first-time homebuyer. You can qualify for an FHA loan with a credit score of 500 with a larger down payment only with select lenders.
FHA home loans require as little as 3.5% down for qualified homebuyers who have decent credit scores.