FHA Financing Overview

The FHA loan program was created to help increase homeownership. The FHA financing program is a great option for buyers who require a smaller down payment or need more credit flexibility than conventional loans.

The FHA loan program allows:

• Minimal Down Payment and Closing Costs
  • Down payment equal to 3.5% of sales price
  • Gift for down payment and closing costs allowed- with certain limitations
  • No post-closing reserves are required
  • FHA regulated closing costs
  • Seller can credit up to 6% of sales price towards buyers costs and loan related expenses
• Credit Qualifying Guidelines
  • Minimum usable credit score of 640
  • FHA will allow a home purchase two years after a bankruptcy
  • FHA will allow a home purchase three years after a foreclosure
• Easier Debt Ratio & Job Requirement Guidelines
  • Higher Debt-to-Income Ratios than other home loan programs
  • Less than two years on the job is allowed
  • Self-employed individuals are also eligible

You do not have to be a first time buyer to obtain a FHA loan. Anyone may use a FHA loan as long as you do not have more than one FHA insured loan at the same time (with certain exceptions).