An FHA mortgage loan is issued by an FHA approved lender and insured by the FHA. These loans were designed for low to moderate income borrowers. They enable borrowers to qualify with a lower down payment and lower credit scores than conventional loan


  • FICO scores from 500 TO 579 require a 10% down payment
  • FICO scores from 580 plus require a 3.5% down payment
  • Two years of verifiable employment or income history
  • Primary residence
  • Must pay upfront mortgage insurance at closing of 1.75% of loan
  • Must pay annual mortgage premiums of 0.45 to 1.05% of loan over 12 months
  • Must have property appraised by FHA approved appraiser
  • Home must meet HUD property guidelines
  • Monthly mortgage payment must not exceed 31% of yearly gross income
  • Monthly mortgage plus other monthly debt must not exceed 43% of your yearly gross income
  • All loans 15 to 30 years with fixed interest
  • Must use HUD or FHA Lender



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