The Federal Housing Administration (FHA) is the insurer on the mortgage product called an FHA loan. The Federal Housing Administration is one of the agencies that is part of the U.S. Department of Housing and Urban Development. With this kind of loan, mortgage insurance is paid by borrowers, which helps to protect the lender in the event the loan is defaulted on.
Due to the regulations that govern FHA Loans, Sean Casey has the ability to be flexible with the qualification process and on approval is able to offer an excellent interest rate. For FHA Loans minimum credit scores do vary, but for a general idea, here is what a typical schedule looks like:
What are the Other Perks of an FHA?
The down payment can be paid for from FHA borrowers own savings.
Alternative sources for the down payment include: state grant, down payment local government assistance program, gift from a family member.
Annual Premiums for FHA Loans
15-year loan, down payment (or equity) of less than 10%: 0.7%
15-year loan, down payment (or equity) of 10% or more: 0.45%
30-year loan, down payment (or equity) of less than 5%: 0.85%
30-year loan, down payment (or equity) of 5% or more: 0.8%
For individuals with credit scores below 500 they are usually not eligible to receive an FHA loan
A credit score of 500 to 579 is required for a 10% mortgage
A credit score of 580 minimum is required for a mortgage that has a down payment of down to 3.5%.
If your credit score is less than 500, don’t give up on searching for the right mortgage for you if you think an FHA Loan is a good solution for you. In certain circumstances the FHA does make allowances for those who have fair credit. Contact Sean Casey if you are someone with a non-traditional credit history for your free consultation for pre-approval so that you can get started on the process of finding the best possible rate.
Since the FHA is not a Lender, but is an Insurer, borrowers must obtain their loan via a FHA-Approved Lender, like Sean Casey. Please be aware that not every FHA-Approved Lender will offer the exact same costs and interest rates – even on the exact same FHA Loan. Call Sean Casey at Pro-Line Mortgage to get the best costs and interest rate on your FHA Loan.
