FHA Loans

FHA Loans

FHA pic

FHA loans are an attractive option, especially for first-time homeowners because it is insured by the Federal Housing Administration (FHA). FHA home loans do not have strict credit score requirements. Typically, FHA loans are more flexible than conventional loans. You do not have to be a first-time homebuyer to get a FHA loan.

 

FHA’s maximum financing is 3.5% downpayment. The minimum credit score required for this is between 580 and 620. Credit scores below 620 require Automated Underwriting approval. Unlike some conventional first-time homebuyer programs there are no other restrictions. There is no income cap for FHA loans like the affordable conventional loan programs.

 

FHA loans are ideal for borrowers who cannot qualify for conventional loans. FHA loans also allows non-traditional credit references if certain criteria are met. Ask us for more information about credit scores and use of credit.

 

A gift from a family member is quite common for the 3.5% downpayment requirement. Grants for the downpayment may also be available from states, cities, counties, local housing authorities, and non-profits. Here are two resources we recommend for downpayment assistance. The Summit County program is actually a loan. Certain restrictions apply.

https://www.chfainfo.com/homeownership

https://www.summithousing.us/

 

There are two types of mortgage insurance required on FHA loans. Mortgage insurance protects the lender in case the borrower defaults. There is no benefit to the borrower from mortgage insurance. The mortgage insurance helps the lender but does nothing to help the borrower during foreclosure.  FHA has an upfront mortgage insurance premium of 1.75%. On a loan amount of $100,000 the cost of the upfront mortgage insurance is $1,750. This premium can be rolled into the financed loan amount.

 

FHA also requires an annual mortgage insurance premium. This can vary depending on the loan term and percent of downpayment. This premium is paid over 12 months. Contact us and we can send you actual payment calculations for your scenarios.

 

An FHA loan has more backing by the Federal government than conventional loans. If a mortgage was not paid a lender can file a claim with the Federal Housing Administration for payment of the remaining balance once foreclosure is complete. Because lenders have this option, they are more willing to lend on FHA loans that are not as well qualified. This means more people can qualify for FHA loans. And that is the goal of the Federal Housing Administration, to make low-cost financing available for more people.

 

FHA loans have different loan limits based on the county. For example, in Summit County FHA allows a high limit of $822,375. Please contact for more details. There are different options available.

 

Licensing

Chad Noble -Mortgage Lender
NMLS 488846

Cornerstone Home Lending, Inc.
Company NMLS 2258

nmlsconsumeraccess.org

Equal Housing Lender

Contact Us

Chad Noble - Your Summit County Mortgage Lender
409 E Main St
Frisco, CO 80443
(970) 390-4084