Just starting out with little to no credit? That doesn’t worry us a bit!
Are you dreaming of becoming a homeowner but worried about the financial hurdles of traditional mortgages? Look no further than FHA loans, provided by the Federal Housing Administration (FHA), a vital part of the U.S. Department of Housing and Urban Development (HUD). FHA loans are designed to make homeownership more accessible, and CBM Mortgage is here to guide you through the process.
Key FHA Loans Features That Can Turn Your Dreams Into Reality
Low Down Payment
FHA loans typically require a lower down payment compared to conventional mortgages. The minimum down payment for an FHA loan is just 3.5% of the purchase price, allowing you to finance 96.5% of the home’s cost. This reduced initial financial burden makes homeownership more achievable.
Credit Score Flexibility
FHA loans are more lenient when it comes to credit requirements. Even if your credit score is less than perfect, possibly as low as 580, you may still qualify for an FHA loan. This means more opportunities for individuals with varying credit histories to own a home.
FHA loans require mortgage insurance to protect the lender in case the borrower defaults on the loan. There are two types of mortgage insurance associated with FHA loans:
- Upfront Mortgage Insurance Premium (UFMIP): Borrowers can finance an upfront fee as part of the loan amount, reducing the immediate financial burden.
- Annual Mortgage Insurance Premium (MIP): This ongoing premium is added to your monthly mortgage payment, with rates and duration varying based on the loan-to-value ratio and loan length.
Properties intended for purchase with an FHA loan must meet specific standards set by FHA. These standards ensure safety, soundness, and security. Additionally, the property should serve as your primary residence, with certain property types that qualify.
FHA loan limits vary by location and are determined based on median home prices in the area. The FHA sets maximum loan limits, and the amount you can borrow under this program depends on the property’s location.
FHA offers a streamlined refinance program known as the FHA Streamline Refinance. This option enables current FHA borrowers to refinance their existing FHA loans with minimal documentation and underwriting. The primary goal is to reduce monthly mortgage payments, providing financial relief.
To apply for an FHA loan and take advantage of these benefits, you’ll want to work with a CBM Home Loan Advisor. Our experienced advisors will guide you through the application process, assess your eligibility, and provide details on the specific loan terms and requirements based on your financial situation. Keep in mind that FHA loan programs may evolve over time, so it’s essential to consult with a CBM lender for the most up-to-date information.
Make homeownership a reality with CBM Mortgage & FHA loans
CBM Mortgage is your hometown lender and would be honored to be part of the loan process for your next home. Please contact a CBM Mortgage representative for more information regarding FHA Financing or apply online:
Additional terms and conditions apply. All approvals subject to underwriting guidelines. Not all applicants will qualify. This is an advertisement and not a commitment to lend. CBM Mortgage is not affiliated with the Federal Housing Administration.