**** FHA today’s’ 30 yr.fixed rate is 4.0% with 0 points (based on 740 credit )
**** For Conventional loans, today’s 30 yr fixed rate is 4.5% with 0 points (based on 740 credit)
FHA mortgages are one of the easiest home mortgage loans to qualify for. Federal Housing Administration, which is a government agency was created in 1934 by the Department of Housing and Urban Development to increase home-ownership. Approximately 40% of all home loans are FHA because they are popular for first-time buyers because of their low down payments and more flexible qualifying guidelines.
You don’t have to have a perfect credit score and the loan requires only a 3.5 percent down payment with a 580 credit score. Most borrowers are required to pay mortgage insurance. If a buyer defaults on the loan, it is foreclosed on and HUD will pay the balance to the lender and take possession of the property. It then is listed on the HUD website. www.hudhomestore.com
500 credit score for 90 percent loan, or 10% down. It is highly recommended that you improve your credit score before applying – a credit score of 580 is preferred.
FHA 2018 loan limits vary depending on where you live. Currently in Clarke County, since we are considered a DC metro area the FHA loan limit is $679,000. Whereas in a county further out, like Frederick, the FHA loan limit is $293,000.
2018 FHA Loan Requirements:
500-579 FICO score requirement with a 10% down payment
580+ FICO score requirement for borrowers with at least a 3.5% down payment
An appraisal must be done by an FHA approved appraiser.
Mortgage insurance (MIP) is required
Steady employment and be able to prove income with recent tax returns, W2’s, and paycheck stubs
Two years of employment at the same company.
Non-occupying co-borrowers allowed At least 18 years of age
Must occupy the home as primary residence
View more information in the HUD Handbook HUD 4155.1 here.
Contact Kevin Dennis at Freedom Bank Mortgage: