FHA Loan
FHA loans are first time homebuyer programs backed by the federal government
The Advantages To An FHA Loan
Low Down Payment
You can qualify for an FHA loan with putting down as little as 3.5% of the purchase price and gift funds are allowable for down payment.
Flexible Guidlines
FHA loans are outstanding options for borrowers with lower credit as the minimum qualifying credit score is 640
Low Interest Rates
FHA loans have great loan pricing and often times have better rates than conventional loans.
Requirements
Credit Score:
The minimum credit score for an FHA loan is 640. There are low credit options available for borrowers with a 580 credit score.
Down Payment:
An FHA loan requires a minimum of 3.5% for down payment. Gift funds from friends or family members are available along with any Down Payment Assistance loans.
Income:
For FHA loans you must have at least two full years of employment history. You do not have to be at the same employer.