What are the benefits of a FHA loan?

An FHA loan is popular option for first time homebuyers

a lower down payment is a benefit of an FHA loan

Lower down payment

The minimum down payment for an FHA home mortgage is only 3.5%. That means if you’re purchasing a home for $175,000, you only need a little over $6,000 for your down payment.

easier credit qualification is a benefit of an FHA loan

Easier credit qualification

Credit scores play a huge part in the type of home loan you qualify for and the rates you’re eligible for. FHA loans offer some of the lowest credit requirements of any loan.

covered closings costs is a benefit

Covered closing costs

Some loans require the borrower to cover all of these associated costs. Good news. With FHA loans home sellers, builders, and lenders are able to pay some of these costs.

only approved mortgage lenders can provide assist borrowers

Approved FHA lender

The Federal Housing Administration does not lend directly to borrowers. Instead, it relies on vetted and approved mortgage lenders to assist borrowers with FHA financing.

Bailey and Wood can help you get an FHA loan

Steps to an FHA loan

Step 1 | Get pre-approved

Our mobile app, Mortgage Express, helps you get pre-approved quickly. It’s secure and you can upload all required documents straight into the app to save you time and energy.

Step 2 | Talk to a Mortgage Consultant

Your mortgage consultant will keep you and your agent updated every step of the way with our Milestone Updates.

Step 3 | Close on your loan

Your consultant will assist you with everything you need and help you setup your closing appointment.

FHA quick contact form

Contact us using the form below and one of our mortgage consultants will respond to you shortly.

Frequently asked questions

How much do I need for an FHA loan down payment?

Your down payment will partially depend on your credit score. The higher your credit score, the lower your down payment can be. The minimum down payment for an FHA loan, however, is 3.5%.

You should also know that the higher your down payment, the less interest you’ll pay over the life of your loan and less you’ll pay month to month.

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What are the FHA loan limits?

The Federal Housing Administration changes the loan limits that it will insure every year. The maximum, also known as the ceiling, and the minimum, also known as the floor, vary according to the cost of living in each area. To learn more about the limits in your area, contact a mortgage consultant.

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What are the credit score qualifications for FHA home loans?

You must have a minimum credit score of 500-579, but will need a minimum down payment of 10%. To be considered eligible for the 3.5% down payment, you need a credit score of 580 or higher.

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Do I have to pay mortgage insurance with an FHA loan?

If your down payment is less than 20%, you will be required to pay mortgage insurance. With and FHA home loan, you’ll pay two types of mortgage insurance premiums. When you get the loan, you’ll pay an upfront premium, which will be .75% of the loan amount. Most of the time, an upfront premium can be rolled into the financed loan. The second type of mortgage premium is an annual premium, which is a paid monthly according the terms of your loan.

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Ready to get started with an FHA loan?