FHA Purchase Loans
FHA loans are loans administered by The Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). FHA loans are easier to qualify for than conventional loans and permit a seller to cover a buyer’s closing costs in an amount up to 6% of the sales price. However, FHA loans have the highest monthly mortgage insurance rates, require up-front mortgage insurance and require that the property pass a more rigorous appraisal.
The basic requirements for an FHA Purchase Loan are:
– 620 median credit score
– 3.5% minimum down payment
– Satisfactory documented Income
– Property must be used as the borrower’s primary residence
– Borrower may not have any other outstanding FHA loans in their name
– Property may not have more than 4 units
FHA loans are loans administered by The Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). FHA loans are easier to qualify for than conventional loans and permit a seller to cover a buyer’s closing costs in an amount up to 6% of the sales price. However, FHA loans have the highest monthly mortgage insurance rates, require up-front mortgage insurance and require that the property pass a more rigorous appraisal.
The basic requirements for an FHA Purchase Loan are:
– 620 median credit score
– 3.5% minimum down payment
– Satisfactory documented Income
– Property must be used as the borrower’s primary residence
– Borrower may not have any other outstanding FHA loans in their name
– Property may not have more than 4 units