FHA Loan
Let’s make homeownership possible.
An FHA loan is a mortgage backed by the government and insured by the Federal Housing Administration. There’s more flexibility when it comes to credit score and debt history, making it easier to qualify when you buy or refinance a home*.
While available to all buyers, an FHA loan is often an affordable option for first-time buyers who may not have enough for a large down payment.
View First-Time Home Buyer options.
Key Features
Low Money Down
As little as 3.5% down payment required, funds may be entirely gifted.
Relaxed Qualifications
Flexible income and credit requirements with minimum credit score of 620.
Competitive Rates
Enjoy a fixed rate with predictable payments. Plus, there’s no pre-payment penalty.
Simple Terms
Available for home purchases and refinances at 15 and 30-year terms.
Please note, FHA requires an upfront and annual mortgage insurance premium that is included in the monthly payment. The amount varies based on loan size. If your down payment is greater than 10%, the mortgage insurance premium is cancelable after 11 years, otherwise it remains for the life of the loan.
Not sure if an FHA Loan is right for you? Let’s talk through it! Call 847-932-8741 or share your contact info here and we’ll connect with you.
Frequently Asked Questions
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What’s an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. Because it’s insured by the FHA, there’s more flexibility for individuals with lower incomes or credit scores. Plus, with low down payment options, FHA loans can be an affordable option for many buyers, especially first-time home buyers.
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Are there any other requirements to qualify?
Please contact us to talk through the details. Some of the things we’ll look at together will include proof of employment (pay stubs and W-2s), payment history, and your credit report.
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How can I prepare?
Some items to compile include personal identification, Title Insurance, and Homeowner’s Insurance Policy, as well as funds at closing via cashier’s check or electronic wire.
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Are FHA loans only for first-time buyers?
No, all buyers looking to finance or refinance their primary residence (not second or vacation home) can benefit from an FHA loan. Please contact a Home Loans Expert to discuss eligibility.
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Why would I choose an FHA loan?
An FHA loan may be the right move if you could benefit from lower down payments and lower credit requirements. There are mortgage insurance premiums that need to be paid, but often the cost can pay for itself through savings from a low rate.
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Is Mortgage Insurance Premium (MIP) required for an FHA loan?
Yes. MIP is required upfront and monthly for the life of the loan. The amount varies based on loan size. For down payments greater than 10%, MIP is cancelable after 11 years.
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Disclosure
*FHA loans require an up-front mortgage insurance premium (UFMIP) which may be financed, or paid at closing and monthly premiums will apply. Maximum loan amounts vary by county. All loan applications are subject to a full underwrite and require verification of income, assets, employment, and rental history if applicable. All loans are also subject to final credit approval, which includes verification of application information and receipt of collateral documents. This offer applies to owner-occupied residential properties only. (Single family homes, condos, and townhomes). To qualify, you must demonstrate that you haven’t owned a home in the last three years. Loan not available in Puerto Rico.