FHA Loans
FHA loans are insured by the Federal Housing Administration and are designed for low-to-moderate-income borrowers. They require lower minimum down payments and credit scores than many conventional loans. This type of loan is ideal for first-time homebuyers or those who have experienced financial hardship. The page will explore the qualifications, process, and advantages of FHA loans, including how they can help achieve homeownership.
Loan Requirements
- Min credit score for FHA loans – 500**
- Min down payment 3.5%
- Max seller paid closing cost 6%
- Max loan amount varies by state and county
- All property types, even manufactured (Condos must be FHA approved)
- Upfront MIP and monthly MI required
**Credit scores between 500-579 max 90% LTV.
-
Can I qualify for an FHA loan with a low credit score?
Credit scores as low as 500 with 10% down below 580
-
What are the closing costs for an FHA loan?
Closing costs vary, but they typically range from 2% to 5% of the loan amount.
-
Can I use an FHA loan to purchase an investment property?
No, FHA loans are intended for owner-occupied properties only.
