An FHA loan is a mortgage insured by the Federal Housing Administration, designed to make homeownership accessible to more people. With lower down payment requirements and flexible credit guidelines, FHA loans are ideal for first-time homebuyers and those with lower credit scores.
An FHA loan requires a minimum down payment of 3.5% of the purchase price for borrowers with a credit of 580 or higher or a 10% down payment for a credit score that’s between 500 and 579.
All down payment funds must come from FHA-approved sources such as personal savings, gift letters, or investments.
The amount you can borrow with an FHA loan depends on the county and whether the area is high or low cost.
For 2024, the FHA loan limits for one-unit properties range from $472,030 to $1,089,300. Check the specific limits for your area to see how much you can borrow.
You can find more about your FHA loan limits here.
Your credit score is determined by factors such as the types of credit you have (ie. credit cards, student loans, auto loans, etc.) how long you’ve had them, how much credit you're using, and how well you pay your bills.
For FHA loans, your debt-to-income ratio (DTI) shouldn't exceed 43%, and your monthly mortgage payments should be no more than 31% of your gross monthly income
The FHA mortgage process typically takes around 30 to 60 days from start to finish, depending on various factors.
Your journey to homeownership begins with knowledge and ends with the keys to your dream home in hand. Let’s take the first step today and turn your homeowning dreams into reality. Work with us today!