Are you a First Time Home Buyer? Learn More About Federal Housing Administration Loans or FHA Loans

An FHA Loan is a mortgage that is insured by the FHA (or Federal Housing Administration). FHA Loans have no income limits, but they do require a 3.5% minimum down payment and a maximum loan amount of $420,680. If the property is a condo it must be on the FHA-approved list. In addition, an upfront mortgage insurance premium is financed into the loan, with seller concessions up to 6% of the sales price. Learn more about FHA Loans from the Score Team by giving us a call at  (314) 607-5566 today.

Who is Eligible for an FHA Loan?

FHA Loans are great options for first-time home buyers because they are designed for people who may not have a lot of savings yet or might not have a lower credit score (usually with a credit score of 580 or higher, although those with scores between 500-579 can still qualify, but need to make a larger down payment.) Also, with FHA Loans, gifts are allowed (such as financial support from family, employers or charitable organizations). If you think you qualify for an FHA Loan, call us today for more information or to schedule your appointment at  (314) 607-5566.

What are the Benefits of FHA Loans?

  • Increased opportunity:

    Since the FHA insures mortgages (providing an added a layer of protection) lenders are more apt to offer favorable terms to borrowers who might not otherwise qualify for a home loan.

  • Multiple locations:

    With an FHA Loan, owners can pursue buying or refinancing anything from single-family houses, multifamily houses, manufactured homes, or even condos. FHA Loans can also be utilized for renovations or new construction.

  • Higher debt-to-income ratio:

    An FHA Loan allows for debt-to-income ratios as high as 50% (in other words, your monthly debt can’t be more than 50% of your income, pre-tax.)

Call the SCORE Team today!