What is an FHA Loan?
An FHA loan is a type of mortgage that is insured by the Federal Housing Administration (FHA). FHA mortgages are popular with first-time homebuyers due to lower minimum credit scores and down payments than some conventional loans.
What are the credit score requirements for an FHA Home Loan?
The minimum credit score for an FHA loan is 500. However, most lenders will impose stricter guidelines requiring a higher minimum credit score.
What are the down payment requirements for FHA Home Loans?
Credit scores of 580 or higher can qualify for 3.5% down payment, while credit scores under 580 require at least 10% down payment.
Does an FHA Home Loan require mortgage insurance?
Mortgage Insurance Premium (MIP) is required on all FHA home loans, regardless of down payment amount. FHA’s MIP lasts for 11 years if your down payment is 10% or more. It lasts for the life of the loan if your down payment is less than 10%.
In addition to MIP on FHA mortgages, there is also an Up Front Mortgage Insurance Premium (UFMIP). This is 1.75% of the loan amount, and it is usually financed in the mortgage.
Can I get an FHA Mortgage after a bankruptcy or a foreclosure?
You can qualify for an FHA home loan after a bankruptcy or foreclosure. You must re-establish good credit and the following waiting periods must be met:
Chapter 7 Bankruptcy – 2 years, measured from the discharge date.
Chapter 13 Bankruptcy – 12 months, measured from the first payment under the bankruptcy
Foreclosure – 3 years, measured from the date the property transferred out of your name.
Are you interested in additional information on an FHA Home Loan? Complete some basic info to obtain your free Ohio Mortgage Rate Quote Request or Contact Me.
