FHA Loans: Your Path to Homeownership, Even with Less-Than-Perfect Credit
FHA mortgages are insured by the Federal Housing Administration and are great for first-time buyers or those with lower credit scores. They come with lower down payments and easier credit qualifications than traditional loans, suitable for 1-4-unit homes.
- Put down just 3.5% if your credit score is 580 or above.
- Qualify with credit scores as low as 500-579 by increasing your down payment to 10%.
- Benefit from competitive rates and loans that can be assumed by future buyers.
- Enjoy more flexible approval for unique credit situations.
- Ideal for purchasing, refinancing, or even adding renovations.
Eligibility Requirements
- Credit Score: Minimum 580 for the lowest down payment; 500-579 with a larger one.
- Down Payment: Starting at 3.5%, and it can come from gifts or assistance programs.
- Debt-to-Income (DTI) Ratio: Up to 43% for housing expenses and 56.9% total, with room for exceptions.
- Income and Employment: Provide proof of steady income and two years of employment; self-employed borrowers welcome with tax returns.
- Assets: Reserves aren't always required, but down payments must be documented/sourced.
- Property: Must pass an FHA appraisal for safety and condition; works for single-family homes, condos, or small 1-4 multifamily units.
If you have any questions or would like more information, call us at (949) 705-7735.