FHA Loans – What You Need to Know!

There are many types of mortgages that buyers can use to get to their goal of home ownership! One of the main types of loans is the FHA, or Federal Housing Administration, loan. This is a government backed loan that requires less credit and down payment requirements for buyers. Buyers only need a 3.5% down payment and gift funds (money given to help the buyer from close family or friends) are allowed. Unlike conventional loans, buyers can qualify for a FHA loan 3 years after a foreclosure, and 2 years after a Chapter 7 or 13 bankruptcy. A minimum FICO score of 580 is required, which allows for more people to be approved! This type of loan does have some other requirements: must be owner occupied (no rental properties can be purchased using an FHA loan) and there is a loan limit of $271,050 in Maricopa County. Borrowers must be a legal resident with a valid social security number, but ‘dreamers’ can be approved for these loans. If you would like to have more information about this loan, please contact me today!

Leave a Reply

Your email address will not be published. Required fields are marked *