FHA Home Loans


FHA Home Loans

www fha gov


FHA Home Loans are very popular because of their low down payment requirement and other more flexiable guidelines.


FHA is short for Federal Housing Administration. FHA provides mortgage insurance for loans made by Federal Housing Administration approved lenders. This mortgage insurance covers single family and multi-family homes, including manufactured homes.

This mortgage insurance provides the lender protection when and if the borrower defaults on their home loan.

FHA operates wholely from its self-generated income and costs the taxpayer nothing.The proceeds paid by borrowers on their mortgage insurance are captured into an account which is used to operate the program in its entirity.

The official FHA website can be found at: http://www.fha.gov

FHA Loan Requirements

FHA Home Loans are popular because they only require 3.5% of the purchase price for a down payment. In addition, when calculating household income and payment ratios FHA is more flexibile.

For a long time there were no FHA Home Loan credit score requirements. Today, most every lender is requiring the borrower to have a middle credit score of 620.

If your credit score falls short of this loan requirement and you want to improve your credit score so you can get approved for a FHA Home Loan then visit: Credit Score Freedom

In addition, there are debt-to-income ratios that must be met to qualify for an FHA Loan. As of this writing this DTI is 29/43. This means that your total debt cannot be more than 43% of your total income and of that debt your house payment itsself cannot be more than 29% of your total income.

FHA Loan Rates

FHA Loan Rates are usually a little lower than rates on conventional loans. Rates are particularly good at this time. If you would like to check current mortgage loan rates visit Bankrate.com

Even though it is an FHA Loan, different lenders will still have different rates, so check around before you settle on a mortgage company where you want to apply for your loan.

FHA Loan Limit

Maximum Loan Limits vary for FHA Loans and are adjusted every so often to take into account home sale prices. To check the maximum loan limit for your county and state visit: FHA Loan Limit

Just enter your state, county and pick Fannie Mae/Freddie Mac for the Loan Type. Leave the rest blank or with the already selected defaults. The click Send and you will be presented with a screen showing the FHA Loan Limit for single family, 2, 3 and 4 family properties.

FHA Credit

In addition to having an adequate debt to income ratio you must have a good credit score. Currently that must be a middle score of 620. If you do not know what your credit score is then visit: Credit Report and Scores and get a copy of your credit report and credit scores.

FHA allows for some credit issues if they are not real current and you have a reasonable explanation of why you had trouble at that time in your life.