What is an FHA Loan?
Get a Mortgage Loan in Miami Even With Low Credit & a Minimum Down Payment
What Is a Federal Housing Administration Loan (FHA) Loan?
FHA loans are government-backed mortgage loans that have relatively loose financial requirements. Even if you have a low credit score and not much money to use for a down payment, you may still be able to get an FHA loan. Read on to learn about the requirements, limits, and rates of an FHA loan, then contact Point Mortgage Corporate of Miami for further guidance in the home loan acquisition process!
Who Qualifies for an FHA Loan?
In 2021, FHA Loan requirements are, according to FHA.com, the following:
FICO® score at least 580 = 3.5% down payment.
FICO® score between 500 and 579 = 10% down payment.
MIP (Mortgage Insurance Premium ) is required.
Debt-to-Income Ratio < 43%.
The home must be the borrower's primary residence.
Borrower must have steady income and proof of employment.
FHA loans are designed for low- to moderate-income borrowers. They are a popular mortgage option for first-time home buyers.
FHA Loans vs. Conventional Mortgages
An FHA loan is a kind of conventional mortgage, however, it has a lower credit score allowance and requires a smaller down payment. For example, with a credit score between 500 and 579, you only have to pay 10% down. And if you have a credit score higher than 580, you can get an FHA loan for as little as 3.5% down! You can get an idea of what your credit looks like by visiting websites such as www.freecreditreport.com and www.creditkarma.com.
How to Qualify for an FHA Loan
When you apply with Point Mortgage, we evaluate your qualifications and see if you are able to get an FHA loan. We don’t just look at your past credit history but also your work history, payment history, and other information.
Point Mortgage is an FHA-approved lender based in Miami that has been serving our community since 2011. Feel free to reach out to us today to learn more about FHA loans as well as other mortgage options, to help you get the best deal on the home of your dreams. Get started today by getting in touch and getting prequalified for a home loan!