![\"FHA](\"https:\/\/mortgageequitypartners.com\/ma-methuen\/wp-content\/uploads\/2024\/03\/FHA-Loan-with-Money.jpg\")
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An\u00a0FHA loan\u00a0is a mortgage insured by the\u00a0Federal Housing Administration (FHA<\/a>). It is particularly popular with first-time homebuyers in New England because it allows borrowers to finance homes with low down payments, sometimes as low as 3.5% of the sales price. Borrowers with lower credit scores and smaller down payments tend to gravitate toward FHA loans since they are often the most affordable loan option.<\/p>\n FHA loans require mortgage insurance due to the low-down-payment option and less stringent qualification guidelines. FHA loans require both upfront and annual mortgage insurance for all borrowers regardless of the amount of the down payment. However, the cost is not a deterrent for most FHA borrowers. It is essential to understand that mortgage insurance differs from homeowner’s insurance. Homeowner\u2019s Insurance protects borrowers by ensuring their homes and contents are covered should an event occur to damage or destroy them. Homeowners’ coverage varies depending on the policy and options, so homebuyers should speak with a qualified insurance agent to learn the specifics.<\/p>\n Remember that FHA credit requirements consider more than just your FICO\u00ae score; they also assess payment history, bankruptcies, foreclosures, and extenuating circumstances.<\/p>\n The down payment option makes FHA loans attractive for buyers who haven’t saved up a sizeable down payment.<\/p>\n FHA loans are not intended for investment properties or second homes. You can use an FHA loan to purchase a\u00a0multi-unit dwelling<\/a>\u00a0(up to four units). However, you must\u00a0live in one unit\u00a0as your primary residence. You can\u00a0rent out the other units if you buy a multi-unit property. The rental income from those units can be considered for\u00a0verifiable income purposes\u00a0when qualifying for the loan.<\/p>\n If you’re considering an FHA loan<\/a> for your Methuen residence, consult with one of our loan officers to understand the specifics and explore your options. Remember, FHA loans provide an accessible path to homeownership, especially for those who may not qualify for conventional loans. If you have any questions or need further assistance, contact us today<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" 8 key requirements of an FHA loan An\u00a0FHA loan\u00a0is a mortgage insured by the\u00a0Federal Housing Administration (FHA). It is particularly popular with first-time homebuyers in New England because it allows borrowers to finance homes with low down payments, sometimes as low as 3.5% of the sales price. Borrowers with lower credit scores and smaller down […]<\/p>\n","protected":false},"author":2,"featured_media":6419,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[6,4],"tags":[],"class_list":{"0":"post-6418","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-articles","8":"category-news","9":"entry"},"_links":{"self":[{"href":"https:\/\/mortgageequitypartners.com\/ma-methuen\/wp-json\/wp\/v2\/posts\/6418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mortgageequitypartners.com\/ma-methuen\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mortgageequitypartners.com\/ma-methuen\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mortgageequitypartners.com\/ma-methuen\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mortgageequitypartners.com\/ma-methuen\/wp-json\/wp\/v2\/comments?post=6418"}],"version-history":[{"count":0,"href":"https:\/\/mortgageequitypartners.com\/ma-methuen\/wp-json\/wp\/v2\/posts\/6418\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mortgageequitypartners.com\/ma-methuen\/wp-json\/wp\/v2\/media\/6419"}],"wp:attachment":[{"href":"https:\/\/mortgageequitypartners.com\/ma-methuen\/wp-json\/wp\/v2\/media?parent=6418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mortgageequitypartners.com\/ma-methuen\/wp-json\/wp\/v2\/categories?post=6418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mortgageequitypartners.com\/ma-methuen\/wp-json\/wp\/v2\/tags?post=6418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}8 key requirements for FHA loans:<\/h3>\n
1. Credit score:<\/h4>\n
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2. Down payment:<\/h4>\n
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3. Residence type:<\/h4>\n
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4. Appraisal:<\/h4>\n
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5. Mortgage insurance:<\/h4>\n
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6. Debt-to-income ratio (DTI):<\/h4>\n
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7. Verifiable income:<\/h4>\n
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8. No delinquency on federal taxes or student loans:<\/h4>\n
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