FHA Mortgage for Purchase
What is a FHA Mortgage for Purchase Loan
An FHA mortgage is backed by the Federal Government and was designed to promote home ownership in America for everyone, even those who are first time buyers, have less than perfect credit, have low income or a limited amount of money for a down payment. An FHA mortgage makes the American dream of home ownership a reality for millions of Americans.
Who is eligible for this loan?
Eligibility requirements for an FHA mortgage are pretty flexible. They include:
- Must be Minimum credit scores as low as 580
- Bankruptcy or foreclosure seasoning of just 3 years and 1 day
- US Citizen or legal resident alien
- FHA is not restricted by income limits or area designations
What are the benefits of this loan?
- Minimum down payment of 3.5% of the purchase price
- Down payment may be gifted from a family member
- Extended debt ratio requirements
- Reduced Credit score and credit history requirements
- Lower interest rates than Conventional loans