FHA Home Loans
An FHA loan provides a government-insured loan with flexible loan options. FHA loans are for primary home buyers and in many cases, this loan is the buyers only option therefore making it an excellent path to home ownership. They have less strict credit requirements and qualifications which make them the easiest loan for buying or refinancing a home.
First Home Mortgage is the actual lender on our FHA loans. We underwrite them in house which comes with many advantages. In exchange for following the rules of FHA, Housing and Urban Development (HUD) insures the loans for us. Meaning, if someone were to default on an FHA loan, HUD would assist with covering our loss. Because of this insurance, FHA loans come with better loan terms and easier qualifying guidelines.
Why would you want an FHA loan?
- FHA is great for borrowers with little amounts of cash. It is a 3.5% down payment minimum, and you can borrow all the way up to the conforming limit
- FHA is great for borrowers with lower credit scores. You can borrow the most amount of money with the lowest credit scores with this loan. Your credit score has a minimal impact on the interest rate on an FHA loan. It has no impact on the mortgage insurance costs. This is the opposite of how a conventional loan works.
- FHA is great for borrowers with past credit difficulties such as bankruptcies, foreclosures and short sales because FHA loans have the shortest waiting periods after one of these housings events.
Why would you not want an FHA loan?
- FHA loans typically have lower interest rates than conventional loans BUT there are fewer loan options to choose from
- FHA typically have lower interest rates than conventional loans BUT have higher mortgage insurance premiums (depending on the buyer’s credit) and the mortgage insurance does not drop off like it does on a conventional loan.
- FHA has an upfront mortgage insurance premium of 1.75% which is financed into the loan amount. However if you were to streamline refinance your FHA loan into another FHA loan within 3 years, you could get a partial refund of this premium back.
Have questions? Give us a call! Amanda & the team would be happy to answer all of your questions and get you started with a great low rate today!
Working with Amanda & Team
- We put YOU first.
- Fast and efficient, we close most of our loans in 30 days or less.
- We offer a variety of loans. Amanda E. Garcia, First Home Mortgage can help you find the loan that is right for you!!!
**Amanda E. Garcia, First Home Mortgage is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.