FHA Loans

About FHA Loans

The FHA program was created in response to the foreclosures and defaults that happened in 1930s; to provide mortgage lenders with adequate insurance; and to help stimulate the housing market by making loans accessible and affordable.

FHA loans, insured by the Federal Housing Administration (FHA) and managed by the U.S. Department of Housing and Urban Development (HUD), make homeownership more accessible by offering affordable mortgage options. These loans require lower down payments and closing costs, with some programs providing 100% financing or grants to assist with down payments.

FHA loans are a great choice for individuals with past financial challenges, such as bankruptcy or foreclosure. They’re available to first-time homebuyers, current homeowners looking to refinance, or anyone purchasing property without an existing FHA loan. The program also offers more lenient debt ratio and employment qualifications compared to conventional loans.

Get more information about the home buying process

Some Key FHA Loan Characteristics

Low Down Payment: Only 3.5% required for purchases.
Minimal Equity for Refinances: Refinance with as little as 2.25% equity in your current home.
Cash-Out Refinances: Borrow up to 85% of your home’s value (not available in Texas).
Flexible Credit Requirements: Ideal for borrowers with less-than-perfect credit.
Seller Contributions: Sellers can cover many closing and prepaid costs.
Gift Funds: Down payments, closing, and prepaid costs can be gifted by relatives or non-profits.
Streamlined Refinancing: No appraisal required for eligible streamlined refinances.
Multifamily Properties: Purchase up to a 4-unit property, live in one unit, and rent out the others.
No Income Limits: No restrictions on borrower income.

Considerations for Borrowers

Suitable for those with limited savings or equity.
Flexible for individuals with imperfect credit histories.
Allows for non-occupying co-borrowers to assist with qualification.
An alternative to USDA loans for non-rural properties.
Ideal for current FHA borrowers looking to refinance.

FHA Loan Qualifying

FHA loans feature straightforward and flexible qualifying requirements:

Employment History: Two years of steady employment, preferably with the same employer.
Income Stability: Consistent or increasing income over the past two years.
Credit Guidelines: Straight-forward and transparent rules make it easy to determine qualification.
Bankruptcy: Must be at least one year old with good credit since filing.
Foreclosure: Must be at least three years old with good credit afterward.
Affordable Payment Ratio: The new mortgage payment should not exceed 30% of gross income.

FHA loans provide an excellent pathway to homeownership for a wide range of borrowers, offering affordability, flexibility, and opportunity.
If you have any questions about FHA Loans, don’t hesitate to reach our to my team at
(210) 987-8943. We are happy to answer your questions and would love to work with you!

Office Phone : (210) 987-8943

Mobile Phone: 210-269-1774

This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.

Corporate | NMLS ID NMLS# 1660690 | Corporate Address : 3100 W Ray Road #201 Office #209 Chandler, AZ 85226

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