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FHA LOANS

FHA loans are a great tool to utilize in the path to home ownership. A notable feature is that you can put as little as 3.5% down on a 1-4 unit owner occupied property.

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Things to know:

- FHA is great for low credit scores! Typically you will see better rates than conventional for scores in the 500's and 600's. It also is more forgiving of past credit events such as foreclosure or bankruptcy and has a shorter wait period before you can apply for a mortgage.

- With a credit score of at least 580, you can put 3.5% down. If between a 500-580 then 10% is required. Many lenders have overlays on this and may not go as low as 500 credit score.

- For owner occupied homes only (2-4 unit investment properties acceptable as long as you live in one unit).

- Mortgage insurance is required for the life of the loan. If FHA is your best option currently, a good strategy is to refinance to a conventional loan later on once either the loan has been paid down, or home has appreciated resulting in 80% or less loan to value.

- Generally you can have up to a 50% debt to income ratio with a FHA loan, some lenders will even allow close to 60%!

- Non occupant co-borrowers are allowed to help you qualify for the loan.

- Can be more difficult in hot markets to get an FHA offer accepted by sellers.

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Aleksey Moody, Loan Officer #2091836 

Edge Home Finance Corporation, NMLS #891464. 1206 Pacific Ave #600, Tacoma, WA 98402

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Edge Home Finance Corp, is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age (provided you have the capacity to enter into a binding contract), because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. The federal agency that administers our compliance with these federal laws is the Federal Trade Commission, Equal Credit Opportunity, Washington, DC, 20580. 

Pre-approvals are based on underwriter review of credit and income documentation only. A pre-approval is not a loan approval, rate lock, guarantee or commitment to lend. An underwriter must review and verify a complete loan application after you are preapproved in order to qualify.

This is not a commitment to lend. Prices and guidelines are subject to change without notice. Some products may not be available in all states. Subject to review of credit and/or collateral; not all applicants will qualify for financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision.

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