FHA Loans
with Low Down Payment Options

• Low Down Payment Requirement: FHA loans allow you to purchase a home with as little as 3.5% down, making it an attractive option for buyers who may not have significant savings.
• Higher Debt-to-Income Ratios: FHA guidelines are more lenient when it comes to debt-to-income (DTI) ratios, often allowing up to 50%, making it easier for borrowers with existing debt to qualify.
• Mortgage Insurance: FHA loans require an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, as well as an annual mortgage insurance premium (MIP), which is typically included in the monthly mortgage payment. This helps protect the lender but also makes homeownership accessible to more borrowers.

To qualify for an FHA loan, borrowers generally need to meet the following criteria:

• Down Payment: As low as 3.5%, depending on credit score.
• Primary Residence Requirement: The property must be used as the borrower’s primary residence.
• Property Standards: The home must meet certain safety, security, and soundness standards as determined by an FHA appraisal.
• Steady Income and Employment: Lenders typically require proof of stable income and employment for at least the past two years.

• Easier Qualification: FHA loans are designed to be more accessible, with lower credit score requirements and higher allowable DTI ratios compared to conventional loans.
• Assumable Mortgage: FHA loans are assumable, meaning a qualified buyer can take over the seller’s existing FHA mortgage, which can be beneficial if interest rates have increased since the original loan was issued.
• Refinancing Options: FHA loans also offer a streamlined refinancing process, allowing existing FHA borrowers to refinance to a lower rate with minimal documentation and no appraisal in some cases.