fha loans

Accessible Home Financing with Government Backing

FHA loans, insured by the Federal Housing Administration, are designed to make homeownership accessible, especially for individuals with less-than-perfect credit or past financial challenges. Established during the Great Depression, these loans continue to assist Americans in purchasing homes and building equity.

down payment

FHA loans require a minimum down payment of 3.5% for borrowers with credit scores of 580 or higher. For those with credit scores between 500 and 579, a 10% down payment is typically required. Additionally, down payment assistance programs may be available to help eligible borrowers.

mortgage insurance

FHA loans include mortgage insurance premiums to protect lenders. Borrowers pay an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount at closing, which can be financed into the loan. Additionally, an annual mortgage insurance premium (MIP), typically around 0.85%, is divided into monthly payments. The exact MIP rate can vary based on loan terms and loan-to-value ratios.

credit score

FHA loans are well-suited for borrowers with credit challenges or past financial difficulties. With more flexible qualification criteria compared to conventional loans, FHA loans provide opportunities for homeownership to a broader range of applicants.

terms

FHA loans are available in various term lengths, commonly 15 or 30 years, allowing borrowers to choose a repayment schedule that aligns with their financial goals.

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Elliott Bowman

(206) 949-5563

NMLS # 1982189

CO License # 100517635


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