First Time Home Buyer

How FHA Loan Works

This loan is a great option for people whose credit scores are 580 and higher, and who have a 3.5% down payment. 

  • Needs an Agent for qualification and income should be atleast 100% AMI


  • 620+ credit score 
  • 3% down payment 
  • Income cannot exceed 100% of area median income 
  • Homebuyer education required

What You’ll Need To Qualify For An FHA Loan

  • A debt-to-income ratio (DTI) of no more than 50% and a steady employment history. Estimate your DTI by adding your monthly debt payments (such as credit card and car payments) and dividing the total by your monthly income before taxes.
  • Money to cover the upfront mortgage insurance premium (UFMIP). The amount is usually equal to 1.75% of your loan amount.
  • Money to cover closing costs, which could be anywhere from 2% – 6% of the purchase price.

FHA Loan Benefits

  • Credit score requirements are lower compared to other loans.
  • You could still qualify for an FHA loan if you’ve had a bankruptcy or other financial issues in the past.
  • They’re available with fixed or adjustable rates and for 30- or 15-year terms.
  • They have low down payment requirements. You can put down as little as 3.5%.

Refinancing with an FHA loan has some great benefits, too:

  • Closing costs can be rolled into your loan.
  • If you’ve already got an FHA loan, you can refinance with an FHA Streamline. Less documentation is required for this option, and you may not need an appraisal. The FHA Streamline is a good option if you’re not looking to take cash out.