For our clients with limited down payment money, lower credit scores, and higher Debt to Income Ratios we offer FHA programs.
- FHA loans can be used for either Purchases or Refinancing.
- FHA only requires a down payment of 3.5% of the purchase price.
- FHA loans allows you to refinance up to 97.75% of the appraised value of your home.
- We are able to offer FHA programs with as low as a 600 middle credit score.
- FHA allows for a higher Debt to Income Ratio (all debt payments on credit including new house payment divided into gross monthly income) compared to Conventional loans. Currently we can help clients with a back end ratio of up to 57% of their total gross income per month.
- We are one of the few lenders that can go this high on Debt Ratio. Most lenders require a 43% back end ratio. This allows you to get more buying power (Higher purchase price) with us compared to many other lenders.
- FHA loans have no prepayment penalty. These loans can be paid off anytime with no penalty for early payoff.
- FHA offers fixed rates and ARM's (Adjustable Rate Mortgages).
- FHA allows a Non-Owner Occupant to Co-Sign on the loan with a borrower to help the borrower qualify for Debt to Income Ratio reasons.
- FHA allows borrowers to get financed that have had a chapter 7 bankruptcy that has discharged 2yrs ago or older.
- FHA allows borrowers to get financed that have had a chapter 13 bankruptcy that has discharged 1 day provided there were 12 months of on time payments made in the chapter 13.
- FHA allows borrowers to get financed that have had either a short sale or foreclosure that is 3 yrs old or older.
- FHA allows borrowers to get financed that have a very limited credit history.
- FHA charges a monthly PMI (Private Mortgage Insurance) on each loan in the borrowers monthly house payment regardless of how much money is put down by the borrower.
**If your credit score is lower than required for this program check out our credit rescore program where we may be able to raise your credit score within a few business days.