FHA loans are an attractive option for home buyers with a few bumps in their financial history. If you have a credit score over 580 and can afford a 3.5% down payment, an FHA loan could be right for you.
Looking for a low, fixed interest rate and a shorter loan term?A 15-year fixed mortgage could be for you.
FHA Loan Requirements
Minimum 580 Credit Score
First Alliance Home Mortgage requires a minimum credit score of 580 for FHA loans.
3.5% Down Payment
You’ll need to make a down payment of at least 3.5% of your new home’s purchase price.
3% – 6% In Closing Costs
With an FHA loan, you’ll need 3% – 6% of the purchase price available to cover closing costs.
Mortgage Insurance Premium (MIP)
You’ll pay an upfront mortgage insurance premium of 1.75% of the base loan amount as well as monthly MIP.
FHA Loan Benefits
Low Credit Score Requirements
You can get an FHA loan with a credit score of just 580 or higher.
Low Down Payment
With an FHA loan, you can put as little as 3.5% down.
Flexible Debt-To-Income Requirements
FHA loans come with less stringent debt-to-income (DTI) requirements than some other loans.
Flexible Borrowing Options
You can choose between a 15-year and 30-year term – with either a fixed or variable interest rate.
Shorter Waiting Periods
You may qualify for an FHA loan sooner after a major event such as a foreclosure, bankruptcy or missed payment.
FHA Loan Options
FHA 30-Year Fixed
A 30-year fixed FHA loan offers the benefits of a 30-year fixed to borrowers with a credit score of 580 or higher.
FHA 15-Year Fixed
A 15-year fixed FHA can help borrowers with lower credit scores get the financing they need.
FHA Adjustable Rate Mortgage (ARM)
The FHA ARM comes with a variable interest rate that may cause your monthly payments to change over time.