An FHA Loan to Make Your Homeowner Dreams Come True
A Federal Housing Administration (FHA) loan is a fantastic loan option. An FHA loan is a government-backed mortgage, insured by the Federal Housing Administration, an agency of HUD. Borrowers pay for monthly mortgage insurance, reducing the risk of loss for FHA approved lenders if the borrowers defaults on the mortgage. Because of this FHA mortgage loans are fantastic for would-be home buyers looking for a mortgage with a minimal down payment, low closing costs and a competitive interest rate. This type of loan is designed for clients with less than perfect credit, who have lower income than some other buyers or who are unable to put down a substantial down payment. Our mortgage brokers have helped hundreds of clients apply for FHA loans and are able to provide approval fast.
The Benefits of a Government-Insured Loan
An FHA loan has a number of benefits when compared with traditional loans, including:
As low as 3.5% down payment, which can come in the form of a gift.
Less stringent credit requirements, with approvals sometimes in the 500-range.
Borrowers need only provide a two-year employment history in some cases.
Loan options for single-unit properties or up to four units.
Possible approval even with a bankruptcy on record.
Variable terms with up to 30-year fixed interest rates.
Mortgage Insurance Premiums
Two mortgage insurance premiums are required on all FHA loans: The upfront premium is 1.75 percent of the loan amount — $1,750 for a $100,000 loan. This upfront premium is paid when the borrower gets the loan. It can be financed as part of the loan amount. The second is called the annual premium, although it is paid monthly. It varies based on the length of the loan, the loan amount and the initial loan-to-value ratio.
30-year loan, down payment (or equity) of less than 5 percent: 0.85 percent
15-year loan, down payment (or equity) of less than 10 percent: 0.70 percent
A wide array of properties are available, including condos, single-units, pre-fabricated homes, and more. At Affordable Lending Group our mortgage brokers will listen to your unique circumstances and help you understand your options. An FHA loan is not for everyone. If you are able to put down a larger down payment and have good credit, we may be able to find a more suitable option for you.
Choosing an FHA Loan with Affordable Lending Group?
We know that most people have some type of financial baggage during their lives. We are proud to serve the community by offering fair, fast mortgage options. We partner with more than 10 major lenders, so we can find the right fit for virtually any homeowner. We can help guide you every step of the way. Because of our long-term partnerships, we can provide much faster approval than many big banks. At Affordable Lending Group, our certified mortgage brokers work closely with our clients to find the best-suited mortgage options for them. An FHA loan is a great option for clients in Jackson, Madison, Hattiesburg, Brandon, Nashville, and Memphis who may otherwise struggle to get a reasonable mortgage.
Ready to learn more, give me a call at 601-213-7722.