FHA Loans – Apply For FHA Loan Online
FHA Mortgage Lenders
FHA loans offer some of the best home loan programs available.
Easy to qualify · Low interest rates · Fast and easy processing.
FHA Loans are a great choice for several different types of borrowers, especially for first time home buyers and a variety of homeowners who need to refinance. One of the reasons that FHA loans are so popular is because of the low down payment option for purchasing a home. Many who apply for a FHA loan will be allowed to buy a home with only a 3.5% down payment. This attracts many people to FHA mortgages since conventional loans require 5-20% for most applicants.
Another reason for the widespread popularity of FHA loans is the requirements to qualify are much less strict than they are for conventional mortgages. Why is this the case? The FHA is a government agency that insures home loans which allows for mortgage lenders to issue loans to borrowers that might otherwise be turned down for a conventional mortgage.
Even aside from their easier qualification guidelines, FHA loans often provide applicants with the best loan terms available to them. It is advised to get pre-approved for a FHA loan and conventional mortgage and compare the loan terms, such as rate and payment. We can help show you what all of your options are so that you can make the best and most educated decision for your home loan.
How Do You Qualify for an FHA Loan?
We make it very easy to get pre-qualified / pre-approved for a FHA loan. In fact, we can assist you with the pre-qualification process in as little as 15 minutes. You can call us now at 1-800-731-3560 or request a free consultation through our website.
Would you like to learn more before getting prequalified? You can view the FHA loan requirements below. FHA loans allow for a degree of flexibility, but there are some basic requirement regarding income, credit, and the type of home you want to buy. Keep in mind that you may be able to get what is called an “exception” on certain conditions if you do not meet these standard guidelines. While there are certain parameters set forth by the FHA, some people can still get approved even if they may not meet each qualification guideline. There are what are called “compensating factors” that can influence an underwriters decision regarding your FHA loan application. The best way to know for certain if you qualify for a FHA loan is to speak with one of our loan representatives.
- Minimum Credit Score of 620
FHA applicants must have at least a 620 credit score. There are cases where a lower score is permitted, if there are redeeming aspects of an application, such as a larger down payment, or good job history, income and assets.
- Owner Occupied
The home you take out a FHA loan on must be your primary residence. The FHA does not offer any programs to purchase an investment property. However, you can buy a duplex or 3-4 unit properties as long as you occupy one of the units. The other units that you do not occupy are allowed to receive rental income.
- Debt-to-Income Ratio
FHA loans require that you do not take on too large of a mortgage payment which you may not be able to afford. There are two types of DTI ratios that are looked at. The first is called the “front end ratio” which is the exact percentage that your new mortgage payment will be compared to your income (if your mortgage payment would be $1,000 and your income is $4,000, this would be a 25% ratio). Your front end ratio can only be 31% of your total income. The other ratio that is looked at is your total debts, and this is called the “backend DTI ratio”. This is the amount of your collective monthly liabilities (such as the new mortgage, auto loans, credit cards, or other debts that show on your credit report). The maximum backend DTI ratio that is allowed is 43%.
- Mortgage Insurance
All FHA loans are required to pay mortgage insurance. There is both upfront mortgage insurance and monthly mortgage insurance premiums, which are required on all FHA loans (regardless of lender). When you speak with a loan representative, they will explain how mortgage insurance works and how precisely how much it will cost for your loan. If you would like to get a general idea of how much your payment and insurance will cost, use this FHA calculator:
FHA Mortgage Calculator
Total Monthly Payment
|FHA base loan amount||$0|
|FHA upfront MIP 1.75%||$0|
|FHA total loan amount||$0|
|Principal & interest||$0|
|FHA MIP 0%||$0|
- Price of Home – Enter the price of the home you want to buy. If you do not have a home in mind yet, just add in a number in the range you expect to want to buy a home for.
- Mortgage – The second field titled “mortgage”, is by default on a 30 year fixed loan schedule. This is the most common loan repayment schedule selected for FHA loans. You can change it to 20 years, 15 years, or 10 years if you want a shorter loan amortization.
- Interest Rate – The interest rate a borrower receives depends on their credit, income, and other qualifying factors. To get an actual rate quote, you will need to speak with a licensed loan officer. You can call 1-800-731-3560 to speak with get prequalified and get a rate quote.
- Down Payment – FHA loans require a 3.5% down payment. If you would like to put more down, add in more into the down payment field. Please note that not everyone will qualify for a 3.5% down payment, and of course, not all applicants are approved for a loan at all. The 3.5% is the amount that many FHA loan applicants will be allowed as a minimum down payment.
- Property Taxes – Add the annual taxes for the home you want to buy. To find out how much the annual property taxes are, check with the county accessor. You can also ask a real estate agent to help you find out what the exact annual property taxes are for a home you are interested in.
- Annual Insurance – The amount that the annual homeowners insurance will cost depends on the property you intend to buy, your homeowners insurance claim history (if you have owned a home before, and had to make a claim), and the specific homeowners insurance company that you select to insure your home.
- Down payment – This is the percentage that is calculated based upon the home purchase price and the down payment amount.
After summiting information into these fields, it will calculate how much the FHA mortgage payment will be based upon these numbers. The next set of data presented on the right side and shows under the total monthly payment is as follows:
- FHA base loan amount -This is the amount of your loan after subtracting your down payment from the total, but prior to adding in the FHA upfront mortgage insurance premium (UPMIP).
- FHA Upfront MIP – All FHA loans require a 1.75% upfront mortgage insurance premium to be paid. This is calculated from the base loan amount. This 1.75% is the same for any borrower and on any type of FHA loan. It does not vary from one FHA lender to another.
- FHA total loan amount – This is the combined total of your FHA base loan amount (after subtracting the down payment), along with the FHA UPMIP. You have the option to pay the FHA UPMIP amount out of pocket, or you can wrap it into the loan amount. Most decide to include it in the loan amount, so we have it automatically added on the calculator.
- Principle and interest – This is the amount of your mortgage payment before adding mortgage insurance, and property taxes, and property insurance.
- FHA MIP – This is the monthly mortgage insurance premiums required on all FHA loans. The amount depends on the type of loan, how many years the repayment schedule is (such as 15 years or 30 years), and the loan-to-value (LTV) ratio. A 15 year loan with a LTV less than 90%, the monthly MIP will be 0.45%. A 15 year loan with a LTV greater than 90%, the monthly MIP will be 0.70%. For a 30 year loan with a LTV less than 95% the monthly MIP is 0.80%. For a 30 year loan with a LTV greater than 95%, the monthly MIP is 0.85%.
- Monthly escrow – This is how much your property taxes and property insurance is after taking the annual amounts and dividing them by 12 monthly payments.
The best way to learn more about FHA loans or to apply is to submit a request for a free consultation. You can also call us at 1-800-731-3560 or email us at firstname.lastname@example.org.
Have more questions about FHA Loans? You can view some of the most frequently asked questions below, or view a most detailed list of FHA loan questions. If you do not see an answer to your question, a loan specialist can assist you, or you can email us anytime at email@example.com.
What states are your FHA loan programs available in?
FHA loans are nationwide in all 50 states. However, we only offer FHA loans in the following states: Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Kansas, Louisiana, Iowa, Illinois, Indiana, Maryland, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, Ohio, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming.
How do I know if I am eligible for an FHA loan?
The first question people want to find out is “can I get a FHA loan?”. The only way to know if you qualify is to take a few minutes and get prequalified. It is easy to find out if you can get a FHA loan. You can learn more about the FHA loan qualifications, but considering the flexibility of FHA loan approvals, what are called “compensating factors” of an application, and other factors, you should just find out for yourself if you can get a FHA loan.
Is it hard to get a FHA loan?
Compared to conventional mortgages, FHA loans are much easier to get approved for. The minimum credit, income, and down payment requirements are much closer in reach for the average applicant than conventional loans. Again, you can easily get prequalified to see if you are eligible for FHA financing. You do not need to submit any paperwork to get prequalifed. Only if after the prequalification process you decided to move forward and officially apply for a loan will you need to submit any documentation.
What are “compensating factors” on FHA loans?
If you are right “on the line” meaning you don’t meet the guidelines for approval, but you have compensating factors, such as more money to put down, more in savings, assets, lengthy job history, or any other aspects of your situation that convince the underwriter you are capable of paying the loan, it can help you get approved.
Are there any zero down payment options for FHA loans?
There are no 0 down payment FHA loan programs that exist. No lenders offer this since the FHA requires a minimum of a 3.5% down payment. The good news though, is the FHA allows for down payments to be borrowed, gifted, or received from as down payment assistance. Conventional loans and other programs do not allow down payments to be borrowed, and must be sourced from ones own bank account or assets.
How long does it take for a FHA loan application to get approved?
To find out if you can get a loan usually only takes about 15 minutes. Then, if you want to apply, and get an official loan approval, is usually done within 24 hours.
How long does a FHA loan take to close?
Once the loan is originated and the process begins, it takes an average of 15-30 days. If you efficiently submit all the documentation that is needed, your loan will be processed much faster.
What documentation is needed for a FHA loan?
All of the standard documentation that is needed for any mortgage is needed for a FHA loan. This includes paystubs and/or bank statements, job verification, tax returns, and whatever other information/coniditions the loan underwriter deems necessary for your loan to be processed.
How much someone borrow? What are the loan limits with FHA loans?
The limit to how much you can borrow is set at the state and county level. The amount that can be borrowed depends on the number of units (1-4). To learn about how much you the FHA loan limits are for your county, and the type of property you wish to purchase, visit the HUD loan limit search page.
Are FHA loans only for first time home buyers?
FHA loans are known for being the (more often than not) best option for a first time home buyer, but they are also available for repeat home buyers.
Can I get a FHA loan to build my own home?
Yes, FHA loans are available for new home construction.
Can a seller cover the closing costs?
Yes, a seller can contribute up to 6% of the sales price towards closing costs.
What credit score is needed to qualify for a 3.5% down payment?
A 620 or higher credit score is needed in order to only have to place 3.5% down.
What are the different FHA programs that I can apply for?
You can learn more about the various FHA home loan programs that are available on our FHA programs options page.
Have more questions about FHA loans? We encourage you to speak with a FHA specialist by giving us a call, or the best method is request a free consultation (available by phone or email).