FHA Loan Explained | Find The Perfect Loan

An FHA loan is a mortgage that is insured by the
Federal Housing Administration. FHA loans are great for first-time homebuyers,
because since they’re backed by the government, you may qualify with a credit score as low as
580, and with a down payment as low as 3.5%. However, they are not limited to first-time
homebuyers. FHA loans can come in several different
payment structures, depending on what you’re looking
for as a homebuyer. If you’re looking for a fixed rate mortgage,
Total Mortgage offers a 15, 20, 25, or 30 year fixed rate FHA loan. We offer several
options for adjustable rate FHA loans as well. Now let’s talk about requirements. In order to qualify for an FHA loan, you must
have a steady employment history of at least two years. Education also counts as
time of employment. We also need to make sure that you haven’t
had any forclosures in the last 3 years, or any bankruptcies in the last 2 years. If you have experienced any of these credit events,
further discussion with a loan officer is necessary. Although FHA loans tend to have a lower interest
rate, they also generally have a higher APR because of the government backed insurance
that is associated with them. But although the monthly payments are usually
slightly higher than conventional loans, they could actually be lower for borrowers
with less-than-perfect credit. So to sum it all up, FHA loans are backed by
the Federal Housing Administration, you may qualify with a credit score
as low as 580, and pay as low as 3.5% down. To learn more about FHA loans, and for
other mortgage resources, visit totalmortgage.com

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