FHA Loans for Borrowers Nationwide
Frequently Asked Questions (FAQ) About FHA Mortgage Loans
Please Note: In June 2012, the credit minimum for FHA loans with PrimeLending increased from 600 to 620.
What is an FHA Loan?
FHA loans are loans that are insured by the Federal Housing Administration (FHA).
What credit scores are required to obtain an FHA loan?
PrimeLending provides FHA loans for credit scores 620 and above. Most other lenders require credit scores of 640 above for FHA loan approval. There are additional requirements to qualify for a mortgage. If you are interested in an FHA loan, use the contact form to the right or call (800) 308-8503. We are here to answer any questions you may have about FHA loans!
What are the benefits of FHA loans?
For borrowers with little money for a down payment, FHA financing can be a great mortgage option. You can obtain an FHA mortgage with as little as 3.5% down.* FHA loans also have more flexible guidelines, which is beneficial to borrowers with credit scores below 740. PrimeLending offers FHA financing for credit scores 620 and above.
What are the drawbacks to FHA loans?
While there are many benefits to obtaining an FHA loan, there are potential drawbacks as well. For example, FHA has a maximum loan amount. These limits are based on average home prices in regions throughout the country. To find the limits for your area, visit the HUD Website.
Another drawback of an FHA loan is that, in addition to paying a nonrefundable premium that is equivalent to 1% of the loan, you must also pay a monthly payment toward your mortgage insurance. FHA loans require you to maintain the mortgage insurance for the greater of 5 years or until your loan amount has reached 80% of the sales price.
Despite these drawbacks, FHA loans are incredibly popular nationwide. FHA enables borrowers to obtain great mortgage rates with low fees and only 3.5% down. If you are interested in an FHA loan, use the contact form to the right or call (800) 308-8503.
How can I qualify for an FHA loan?
To qualify for an FHA loan, PrimeLending requires a minimum credit score of 620. There are additional requirements to qualify for a mortgage, such as debt to income ratio guidelines. We are here to help and answer any questions you may have about FHA loans.
To contact a loan expert, use the contact form to the right or call (800) 308-8503.