- The primary goal of the Federal Housing Administration (FHA) is to improve the housing market and protect lenders in the event a borrower was to default on their mortgage. The FHA has grown to become one of the largest insurer of mortgage in the world having insured over 34 million mortgage over the past 80 years. SouthWest Equity Mortgage is proud to offer great rates and flexible financing options on FHA loans.
An FHA loan can be used for a number of different purposes including special renovation products, reverse mortgages, refinancing an existing mortgage, or purchasing a new home. Cash out FHA refinance options are available to buyers in need of cash for capital for home repairs and debt consolidation.
FHA loans offer relaxed credit requirements and lower down payment options making them easier to qualify for. Buyers can qualify for an FHA loan with a down payment of only 3.5% of the purchase price and a credit score of 580. Another great thing about FHA loans is that family members can gift the down payment money for a home purchase.
FHA Loan Requirements:
- Down Payment: A down payment of only 3.5% of the purchased price is required.
- Credit Score: The minimum credit score requirement is 580 however borrowers with a lower credit score could potential qualify with a higher down payment.
- Income Requirements: A debt-to-income ratio requirement of 56.99% is allowed on FHA loans.
- Property Requirements: All properties purchased through the FHA loan program must meet certain safety, soundness, and security requirements set forth by the FHA.
At SouthWest Equity Mortgage we are committed to helping our clients with all of their FHA loan needs whether you are purchasing your very first home or looking to refinance your current FHA loan at a lower rate, we can help! Contact us today at 619-476-3556 with any questions you may have on FHA loans or a free consultation.