FHA Loans with Low Down Payment and Flexible Credit Requirements
FHA Home Loans
Most buyers don’t fit into the perfect qualification box. That is why FHA is such a wonderful and affordable mortgage option. FHA is short for the Federal Housing Administration and there are many over the top benefits for homebuyers. First it allows buyers a low down payment option allowing several flexible sources. Then buyers with special income or debt ratio issues have solution possibilities. For example, borrowers are allowed to have higher debt to income ratios (Potentially 55%). Even if a buyer’s debt ratio is still too high, non-occupying co-borrowers are allowed. As a matter of fact, we have encountered many borrowers with tough income scenarios. Correspondingly, we have even closed 1 year commission income approvals.
Federal Housing Administration loans are primarily known for being flexible with credit including the use of alternative credit. Alternative credit may be used to turn a thin credit file into an approval. A buyer may have credit scores in the low 600’s or a previous foreclosure, short sale, or bankruptcy.
So for these reasons, buyers purchasing a primary residence should explore this product. Additionally, it is a great option for a rate/term refinance or cash out. Although many lenders are exiting FHA lending, we are lending strong to this segment of borrowers.
Quick Links for FHA Tips
Use Seller Paid Costs. Check out the maximum costs a seller may pay for the buyer. Seller paid costs lower the buyer’s cash to close.
FHA Approved Condos: Condo financing can be difficult, but HUD and the Federal Housing Administration allows for a low down payment condo purchase. Currently agencies are working to increase the amount of condo complex approvals. Check out approved condos in your area or let us check.
Down payment may be a gift. Employers or family members may provide funds for down payment and closing costs. But it is important to remember that there are specific steps to follow when gifting.
FHA Streamline Refinance. So if you currently have an FHA loan, it is possible to refinance to a lower payment and rate. Furthermore, there is often no appraisal required!
Manufactured home mortgage. We have an option to finance a manufactured home and land with only 3.5% down payment. But, manufactured homes have additional guidelines. These include specific foundation requirements and a 660 minimum credit score.
Purchase Renovation Loans. A 203k loan allows a buyer or homeowner to include home improvements in their home loan. Moreover, it requires a small down payment percentage. Use this product to make your own HGTV story!
Why choose Team Move for your FHA loan?
Our team continually trains and reviews underwriting guidelines. So we continue to sharpen the saw to solve your scenario and answer your tough questions. Additionally, we have full access to our dedicated underwriters. Like most loans today, knowing the guidelines and how they apply to your situation and goals solves problems. We recognize the importance of purchasing your home and you will appreciate our knowledge & caring attitude. These products include fixed and ARM rates and a streamlined refinance ability for borrowers that currently have an FHA loan. Furthermore, as we review and underwrite a file, we provide constant communication to all parties.
Check out our Team News!
Our team experiences so many scenarios in working with buyers, builders, realtors, and others so we have created this informative blog to help you find answers to your mortgage questions or scenarios. View News & Blog