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FHA home loans are a popular option for many home buyers due to their flexibility and ease of qualification. Whether you’re a first-time home buyer, have a low credit score, or are looking to refinance, FHA home loans can provide you with the financial support you need to achieve your homeownership goals.


What are FHA Home Loans? 

FHA home loans are a type of residential mortgage loan that is backed by the federal government and overseen by the Federal Housing Administration (FHA). These loans are designed to help home buyers with poor credit scores and small down payments achieve their homeownership goals. FHA home loans are funded by FHA-approved lenders or banks and are guaranteed by the federal government.



The FHA down payment requirement is 3.5% of the purchase value, but it may increase to 10% if your credit score is lower than 580. In addition to the down payment, there are other requirements for FHA home loans, including:

  • A minimum FICO score of 500
  • 2 years of employment history
  • Income fully documented for the last 2 years
  • Mortgage Insurance Premium (MIP) required
  • Maximum debt-to-income (DIT) ratio of 43% (with some exceptions)
  • The property must be your primary residence
  • No foreclosures or bankruptcies in the last 2 years


Types of Properties You Can Buy

FHA home loans are only allowed for owner-occupied residential properties and can be used to purchase single-family residences, condos, townhouses, and 2-4 unit properties (where you must live in one of the units).


Types of FHA Home Loans

There are several types of FHA home loans available, including:

  • Basic Home Mortgage 203(b) – with fixed or adjustable rates, used for buying or refinancing a primary residence with a low minimum down payment
  • 203 K Rehab Mortgage – finances both the purchase and renovation of a property
  • Energy-Efficient Mortgage (EEM) – finances energy-efficient upgrades when buying or refinancing a home


Loan Amount 

The amount you can borrow with an FHA home loan will depend on various factors, including your credit score, employment history, county limits and income.


Down Payment Assistance 

If you are struggling to come up with the down payment for an FHA home loan, there are numerous down payment assistance programs available in the United States, including the CalHome Program, First Home Mortgage Program, and My Home Assistance Program.


The Benefits of Working with an Experienced Lender 

When it comes to securing an FHA home loan, working with an experienced lender can make all the difference. An experienced lender will have the knowledge and resources to guide you through the loan process, answer your questions, and help you find the best loan program to meet your unique needs and goals. They can also provide you with valuable advice on how to improve your credit score and increase your chances of qualifying for an FHA home loan.


Let’s Start Your Journey to Homeownership 

If you’re ready to take the first step towards homeownership, contact us today. Our team of experienced lending professionals is here to help you achieve your dream of homeownership with ease and confidence.