FHA Loans

General Overview

Insured by the federal government, allowing borrowers to purchase or refinance. When purchasing, the borrower can obtain a loan with as little as a 3.5% down payment and with a credit score down to 580. If the credit score is 579 down to 500 that would require 10% down. For a refinance, the borrower can do a cash-out up to 80% of the value of the home and do a non-cash-out loan up to 97.75% of the value of the home.

FHA has loan limits per county https://entp.hud.gov/idapp/html/hicostlook.cfm


There are many. Income, assets, and credit all play a role in qualifying for this loan product.

Please reach out to discuss.


What is HUD?

HUD is the government entity that oversees FHA loans.

What are the key differences between an FHA loan and a Conventional loan?

FHA loans allow for lower credit requirements and higher debt to income ratios

What are the pros and cons of this type of loan?

These offer lower interest rates as a pro, but on the downside, there are 2 forms of mortgage insurance.