Loan programs
FHA loans
An FHA loan is insured by the Federal Housing Administration, which lets lenders approve buyers that a conventional loan would turn away or price poorly. It is built for primary homes.
Who it fits
- First-time buyers
- Credit that is rebuilding or thin
- Higher debt-to-income ratios
- Buyers using gift funds or down payment assistance
What to know
- FHA can suit buyers rebuilding credit, with small down payments; credit requirements depend on the program and lender.
- FHA charges an upfront mortgage insurance premium (usually financed into the loan) and a monthly premium.
- Sellers can contribute toward your closing costs, which can reduce the cash you bring.
- An FHA loan can later be refinanced to conventional to drop mortgage insurance once you have the equity.
What you'll need
- Two years of employment history
- Recent pay stubs and W-2s
- Bank statements, and a gift letter if family is helping
Questions
FHA questions
Can I get an FHA loan after a bankruptcy?
Often, yes, after a waiting period that depends on the type of bankruptcy and how you have handled credit since. Bring the discharge date and we can tell you where you stand.
Does FHA mortgage insurance ever go away?
It depends on your down payment. With a smaller down payment it lasts for the life of the loan, which is why many owners refinance to conventional once they have built equity.
Get started
Talk through FHA options
A few details and Lucas will come back with real options and real numbers, usually the same business day.
- No cost and no obligation
- Answered by Lucas, not a call center
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