Are you self-employed, a first-time buyer, or a borrower with non-traditional credit? An FHA loan may be perfect for you. Insured by the Federal Housing Administration (FHA), FHA loans have no income limits, no geographic restrictions, and have liberal qualification requirements. Typically FHA also offers a lower down payment, lower monthly insurance premiums, and lower closing costs. This loan type can be used to buy an existing home, build a new home, or even refinance your current home into an FHA mortgage (really, the options are endless).
- Lower credit scores allowed
- Down payment can be a gift from acceptable sources
- 3.5% down payment plus closing costs
- Mortgage Insurance: Upfront premium of 1.75% added to the loan, monthly premium = loan amount x .85% / 12 mo.
- 2020 FHA Loan limits:
- 1 Unit= $331, 760
- 2 Unit= $424, 800
- 3 Unit= $513, 450
- 4 Unit= $638, 100