FHA Loans

What is an FHA Loan?

An FHA mortgage loan is a government-backed home loan available to first-time homebuyers and existing homeowners. The main advantage of an FHA mortgage is that it requires a smaller down payment than a conventional mortgage, making it ideal for low- or moderate-income borrowers.

FHA Loans

Benefits of an FHA Loan

There are a couple of main benefits of an FHA mortgage loan:


  • Low down payment: You can get an FHA loan with as little as a 3.5% down payment.



  • Flexible credit requirements: You can still qualify for an FHA loan even if you have less-than-perfect credit.

Drawbacks of an FHA Loan

There are also a couple of drawbacks to keep in mind:


  • Mortgage insurance: All FHA loans require mortgage insurance, which is an additional monthly expense.


  • Stricter housing requirements: Because the FHA insures your loan, lenders may be more strict about the condition of the home you’re buying.

How to Qualify for an FHA Mortgage Loan

  • Employment Requirements:  You must have been employed for at least two years in the same line of work to qualify. There are some exceptions to this, so make sure to consult with a mortgage broker if this is not the case.


  • Credit Requirements: You must have a credit score of at least 580 to qualify for a three percent down payment, or a credit score of at least 500 to qualify for a ten percent down payment. We generally recommend having a score of 640 or higher.


  • Asset Requirements:  You must have a down payment saved up, which can come from your own savings, a family member, or borrowed against your assets (such as 401K). You will also need enough to cover your closing costs if the seller contributions do not fully cover it.


If you're interested in getting an FHA mortgage loan, the first step is to contact a mortgage broker. They can help you determine if you qualify and walk you through the next steps. Click here to schedule a meeting, or call (706) 250-2006 today!

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