Backed by HUD, these loans are available for borrowers with very little money to put down or perhaps have a low credit score. Or, if you are buying a multi-family property and lack a sufficient down payment to qualify for a traditional Fannie Mae loan, an FHA loan may be your answer to home ownership.
With an FHA loan, you can buy a home with a down payment of as little as 3.5% of the home’s sales price. Many borrowers have found FHA loans to be a better option than conventional loans due to more flexible qualifying guidelines. FHA loans are a great way to build credit and equity simultaneously. They are an excellent option for first-time homebuyers because they provide an easier path to homeownership.
- Easier Credit qualifications
- Minimum Credit Score 580.
- Down Payment 3.5% of the sales price
- Higher Debt to income ratio flexibility.
- Cash-out refinance up to 80% of home value.
- Rate and term refinance available up to 97.75% of home value.