FHA loans

Built for the file that does not fit neatly anywhere else.

FHA loans are insured by the Federal Housing Administration, which is why lenders can be more forgiving on credit and on the size of the down payment.

See if I qualifyTalk to Cole
3.5% downWith a 580 credit score
580+Or 10% down from 500
AssumableA real advantage later

FHA loans

Where FHA is the right answer

Thin or bruised credit is the classic case. So is a debt ratio a little above what a conventional lender will accept, or a recent event such as a medical collection that looks worse on paper than it was in life.

The cost is mortgage insurance: an upfront premium, usually financed into the loan, plus a monthly one that stays for the life of the loan on most FHA terms. That is the honest trade, and it is why we often plan the exit at the same time as the entry.

  • Credit between 580 and 660, where conventional gets expensive
  • A past bankruptcy or foreclosure that has aged enough
  • Higher debt ratios with a steady income behind them
  • Buyers with 3.5% saved and no more

What is assessed

What a lender is actually looking at.

None of this is a secret, and knowing it early is the difference between a smooth file and a scramble two weeks before closing.

Credit score580 for 3.5% down. Between 500 and 579 it is 10% down. Below 500 there is no FHA route.
Mortgage insuranceAn upfront premium of 1.75% of the loan, usually financed, plus an annual premium paid monthly. On most terms it does not fall off.
Property conditionFHA appraisals look at safety and soundness, not just value. Peeling paint on an older home and missing handrails are real, common holdups.
The exitMany FHA borrowers refinance to conventional once they have equity and better credit. Planning for that at the start is part of doing this properly.

Three minutes

Find out where you stand on this program.

The qualifier asks five questions and comes back with the programs you fit and an estimated monthly payment. It does not run a credit check to do it.

  • No credit check to get an answer
  • An estimated payment before anyone calls you
  • Routed to a named loan officer, not a queue

See what you qualify for

Free

Questions

The ones people actually ask.

Is FHA only for first time buyers?
No. It is the program most first time buyers use, but there is no requirement to be one. It does have to be a home you live in.
Can I get rid of FHA mortgage insurance?
On most current FHA loans, only by refinancing into a conventional loan once you have around 20% equity and the credit to qualify. That is a normal, planned step rather than a failure.
What does assumable mean and why does it matter?
A qualified buyer can take over your FHA loan, including its rate. If rates rise after you buy, a low assumable rate becomes a genuine selling point for your house.

Who handles fha loans

Cole Wall

Loan Officer · NMLS #2808449

Cole thinks an informed buyer is a confident buyer, so he will not let you sign anything you cannot explain back to him.

Read the full profile (714) 469-9577

Other programs

Compare it against the alternatives.

Most borrowers fit more than one program. Which one is best depends on how long you will hold the loan, not only on what you qualify for today.

Buying a homePurchase loans RefinancingLower it or shorten it ConventionalFrom 3% down FHA3.5% down, 580+ VANo down payment USDAZero down, eligible areas JumboAbove the limit Bank statementSelf employed InvestorDSCR and short sales CommercialFive units and up

Get a straight answer before you commit to anything.

Three minutes, no credit check, no obligation, and a named loan officer on the other end of it.

See what I qualify for Or call (714) 469-9577

August Mortgage Group, NMLS #2642110. Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval and property appraisal.