FHA Loans
An FHA loan is available in fixed rate and adjustable rate.
Fixed Rate FHA
Do you have less than perfect credit and still want to qualify for a home loan?
Are you lacking cash to use as a down payment, or have less than 20% equity in your home?
FHA home loans are one of the easiest loans to qualify for. If your credit score is below 620 or you’ve, had a Bankruptcy in the last 2 years this is a great place to start. These loans are government-insured. Your credit score can be as low as 580 to qualify.
Your down payment can be as little as 3.5% down. Pre-payment penalties do not apply, and you can select a fixed rate using a 30, 25, 20 or 15-year term. These loans do carry private mortgage insurance (PMI)
You can also refinance up to 80% of the value of your home. Appraisals are mandatory for these loans.
It is common to start here and refinance into a conventional loan in a few yearsdown the road to remove mortgage insurance.
Adjustable Rate FHA
Do you want to take advantage of today’s lowest possible interest rate, but have struggled with your credit in the past?
Do you plan on refinancing, or moving in the next five years?
An FHA variable rate loan gives you the benefit of the lowest interest rate and the easiest qualifications.
After the initial five-year fixed rate, your interest rate will increase or decrease annually over the duration of the loan, depending on the fluctuation of the interest rate. Credit score and down payment requirements are the same