Easier Qualification Requirements
The FHA (Federal Housing Administration) loan is one of several government-insured loans. FHA doesn’t lend money directly to home buyers; they insure lenders against losses that may occur from client default. Because of this, lenders have less strict requirements for borrowers. Traditionally, these loans have been a popular choice for first-time home buyers.
How much can I expect to pay each month?
Calculate your potential new monthly mortgage payment in seconds with this handy calculator so you can make sure you have enough money left over each month for all your other expenses. Choose your rate and term—you might be surprised to see how affordable it is to own your home in less time than you thought. See how much interest you’ll pay over the life of the loan, and enter prepayment amounts to calculate their impact on your mortgage.
FAQs
How can the FHA help me buy a home?
The Federal Housing Administration is a government agency that insures mortgages, giving mortgage lenders the ability to give mortgages to people who might not qualify for conventional mortgages. To make it easier to get approval and buy a home, the down payment requirements for these loans are considerably lower than a conventional mortgage.
How much do I need for a down payment with an FHA mortgage?
You can get an FHA home loan for as little as 3.5% down payment. That means to purchase a $200,000 home, you would only need a $7,000 down payment.
Do I need to apply directly to the FHA for an FHA home loan?
No. The Federal Housing Administration does not make loans directly, FHA-approved lenders are the ones working with borrowers (you!).
What is mortgage insurance and why do I need it?
Mortgage insurance protects the lender against the possibility that a borrower defaults on the mortgage and is completely different from homeowners insurance. With an FHA home loan, you can pay for the mortgage insurance with an upfront payment and then a smaller addition to your monthly mortgage payments.
Can I qualify for an FHA loan if I’ve previously had a bankruptcy?
A bankruptcy does not disqualify an applicant from qualifying for an FHA home loan if ones payment history has since improved. It may take up to two years depending on the type of bankruptcy you filed.