FHA Loans

Many people looking for a new home are turning to FHA insured loan programs. Because FHA Loans are insured by the Federal Housing Administration, homebuyers have an easier time qualifying for a mortgage. Those who typically benefit most by an FHA loan are first-time home buyers and those who have less than perfect credit.

FHA Loan Benefits

FHA insured mortgages can help more people into the home buying market. Check out the list below to understand some of the most basic benefits of an FHA mortgage.

Easier to Qualify for – because they’re backed by the federal government lenders are more likely to give you the kind of loan that you need.

Low Down Payment – FHA insured mortgages only require a 3.5% down-payment which makes it easier for people to own homes. Additionally the 3.5% can come in the form of gifts, unlike many other loan programs.

Lower Credit Borrowers Qualify – because FHA insured loans are backed by the government those with a poor credit history have an easier time getting this kind of loan.

Better Interest Rates – with the backing of the government these loans typically have a better interest rate than most traditional mortgage loans.

FHA Loan Checklist

When you're applying for an FHA loan the following list of documents will help expedite the process. We can help you understand any part of the FHA loan process so don't hesitate to contact us with any questions.

Employment Info

  • Past two years completed tax returns.

  • Past two years W-2's, 1099's and any other necessary tax forms.

  • One month worth of newest pay stubs.

  • Self-employed will need three years tax returns and YTD Profit & Loss Statement.

Savings Info

  • Past three months full bank statements for all accounts.

  • Any recent statements from investment accounts (retirement, 410k, mutual funds, etc.).

Personal Info

  • Driver's License or other official State identification.

  • Social Security Card.

  • Any Divorce, Palimony, Alimony Documents.

  • Green card or work-permit (if applicable).

FHA Qualifications

In order to qualify for an FHA loan, a borrower typically needs to meet this criteria:

  • Proven employment status of at least 2 years.

  • Steady or increasing income over a 2 year period.

  • History of on-time payment. No more than two missed payments on your credit.

  • If you've filed for bankruptcy you must wait at least 2 years and have good credit since you filed.

  • Those with foreclosures must wait at least 3 years since the most recent foreclosure.

  • Monthly mortgage payment should be roughly 30% of your gross income.

  • You must pay a minimum of a 3.5% down-payment.

  • Agree to 2.25% in closing costs

  • Only certain properties are eligible - single-family homes, condominiums, double-wide manufactured homes, modular homes and 2-4 unit properties.

  • The property must be your primary residence.