FHA Loans

SPECIFICS

FHA loan limits vary by county, property type, and calendar year. Maximum eligible loan amounts are subject to current Federal Housing Administration (FHA) guidelines and borrower qualifications.

DOWN PAYMENT REQUIREMENTS

FHA loans may offer low down payment options for eligible borrowers.

Eligible gift funds and approved down payment assistance programs may be used toward certain down payment or closing cost requirements when applicable FHA guidelines are met.

FHA loans are generally subject to an upfront mortgage insurance premium and an annual mortgage insurance premium.

CREDIT REQUIREMENTS

Credit score requirements and available financing vary based on FHA guidelines, borrower qualifications, and applicable lender requirements.

FHA guidelines permit different levels of financing based on the borrower’s credit profile, and individual lenders may have additional credit requirements.

DEBT-TO-INCOME RATIOS / RATE OPTIONS

Debt-to-income requirements vary based on borrower qualifications, underwriting findings, compensating factors, and applicable FHA and lender guidelines.

Fixed-rate and adjustable-rate mortgage options may be available depending on the FHA loan program and borrower qualifications.

PRIOR CREDIT EVENT WAITING PERIODS

Borrowers with a prior bankruptcy, foreclosure, short sale, or other significant credit event may still be eligible for FHA financing.

Applicable waiting periods and documentation requirements vary based on the type of credit event, borrower circumstances, and current FHA and lender guidelines. Certain circumstances may receive additional consideration when applicable FHA requirements are met.

OTHER IMPORTANT FACTS

FHA purchase loans are generally intended for properties that will be occupied as the borrower’s principal residence.

Seller and other interested-party contributions toward eligible closing costs and prepaid expenses may be permitted subject to applicable FHA limits and requirements.

Property eligibility, appraisal requirements, income, credit, and other qualification standards apply.

MORTGAGE INSURANCE

Most FHA loans require an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP) paid in monthly installments.

The amount and duration of mortgage insurance depend on factors including the loan-to-value ratio, loan term, loan amount, and applicable FHA requirements.

IMPORTANT INFORMATION

Loan limits, rates, fees, mortgage insurance requirements, eligibility standards, qualification requirements, and program availability are subject to change and applicable FHA and lender guidelines.