FHA loans are insured by the Federal Housing Administration and can be a great option for people who would normally find it difficult to qualify for a mortgage due to their income level, credit history, or their ability to put down a sufficient amount of down payment. For borrowers with a credit score of 580 or higher, these loans allow a down payment of just 3.5% of the total cost of the home. For those with a credit score between 500 and 579, a 10% down payment is required.
Whether you need a reduced down payment, or have not-so-perfect credit, an FHA loan remains one of the easiest loans to obtain today, benefiting first-time home buyers, as well as those who plan to make substantial repairs and need additional cash set aside for those improvements.
But there are qualifying factors for both the borrower and the home you choose. FHA loans require that a FHA-approved appraiser conduct an appraisal and it must meet certain standards of condition.
While a conventional loan typically requires a down payment of 20 percent, the down payment on an FHA loan can be as low as 3.5 percent.
Furthermore, the source of the funds used for a down payment can be (in part or whole) a gift from a family member, as well as funds obtained through a grant from a state or local home buyer’s assistance program.
Closing costs include an appraisal, a credit report, title expenses, and more, and can often be covered by the seller, or the lender themselves. A home seller may, for example, agree to cover all or part of the closing costs as part of the negotiated price. Closing costs can also be included in the loan, although a higher interest rate may apply.
Mortgage Insurance for an FHA loan is a two-part process: an initial premium (1.75 percent of the base loan amount) paid upfront, and an annual premium broken into monthly installments, included as part of the total monthly loan payment. The upfront premium is typically included in the loan. The total amount of the loan, as well as the years financed will determine the annual/monthly premium installment. Borrowers who make a larger down payment can typically reduce mortgage insurance fees, as they have personally assumed more of the risk with a larger down payment.
CostPro Lending Team has been successfully securing FHA financing for our clients for over two decades.
Contact CostPro Lending Team today and find out if you qualify for an FHA loan! A consultation with a member of our team can help you quickly identify if you meet the loan requirements for an FHA loan.
The loan program referenced is subject to Summit’s program minimum FICO and underwriting requirements, which may differ from those imposed by the FHA. Summit is a private mortgage lender authorized as an approved FHA direct seller servicer. This communication is not intended to indicate FHA endorsement or approval of any loan program.
This communication is for informational purposes only, this is not a commitment to lend. Individual buyer’s financial circumstances may be different and may result in different interest rates, costs, and payments. All programs are subject to change or cancellation at any time and without notice. Please consult your licensed Loan Originator to learn more about mortgage products, your eligibility, and ask for an official Loan Estimate before choosing your loan.
We recently had the distinct honor and pleasure to work with Mike Zamani (of CostPro) to refinance our home mortgage.
Mike made our journey through today’s finance world a smooth process and actually somewhat easy. He was always available to answer questions, offer explanations promptly, patiently, and competently. Mike’s communication style and even his voice, which is crisp, succinct, yet calming helped us feel we were in very good hands.
Beyond Mike himself, his team were also very efficient, competent, and worked with us to assure things happened smoothly.
We highly recommend Mike Zamani! A gentleman and scholar indeed, with a great personality to boot!
Thanks again Mike!
It’s the day after I closed on my Re-Fi and I still can’t believe it! I was contacted by a bank and after looking at my file, they said I needed to get a co-signer! I forgot about doing it until I got a call from Tony. He looked everything over and thought it was doable. They put Tony through the wringer. No matter what we gave them, they wanted more. Finally, they ran out of things to ask us and said YES! If anyone but Tony had called me I would not of had the same result. I will be forever grateful!!Liz S.
To whom it may concern,
this is to confirm that Brian Mays, Lee Garoutte, and their team are some of the most dedicated people to work with, they went out of the way and bent over backwards to make sure that my loan went through. They went over and above to get the task completed. I highly recommend Brian, Lee, their team to anyone who is trying to get their loan approved.
Dear Tony Christensen, I just wanted to say thank you for all your help refinancing my home, you were very helpful and explained every detail so that I could understand every step we were doing. Thank you very much for all your help and I am very happy that I chose to refinance with you. I will recommend you to any of my friends that want to refinance. Thank you again for all your help, You Were Great!!!!Ofelia L.
I am very glad to say, when I called Costpro and Michael answered my call. Great personality and experience working with him. I totally recommend working with him.Sia
Mike Z at Costpro Lending was a pleasure to work with. We called him on a few issues we wanted answers to and would always get back to us in a timely manner. A couple times we wondered how thing were progressing through the holiday and the next day we received an update from him. Great customer service. We would definitely recommend. Thank you Mike Z…:)Betty Chow