Buying a home comes with a lot of requirements, and it can be intimidating, especially for first-time homebuyers. Luckily, the FHA loan has flexible requirements that allow you to own a home under favorable conditions.
Anew Lending, a leading mortgage lending company in Sacramento, CA, explains how the FHA loan works, its requirements, and how to qualify.
What is a FHA Loan?
FHA loans are mortgage loans backed by the Federal Housing Authority. Under this program, the FHA insures your mortgage, which means that your lender is protected from loss, even if you default on your payment.
As a government-backed loan, it comes with lower financial requirements, low down payment, and lower credit score requirements. However, FHA loans can only be used to purchase your primary residence. This means that the home you purchase must be your primary residence, and you must live in it for at least a year.
What Are the Requirements for FHA Loans?
FHA loans are not limited to first-time home buyers; everyone can get an FHA loan as long as they meet the requirement, which includes the following:
- A credit score of 580 and above
- Downpayment of 3.5%
- No income limit
- Property must be a primary residence
- Borrowers must pay mortgage insurance
- Low closing cost
What Are the Benefits of FHA Loans?
FHA loans have many benefits that make them attractive to many home buyers, and they include the following:
1. Qualification
FHA loans are easy to access. Any homeowner can get FHA loans as long as they meet the requirements, which are easy to meet.
2. Credit Score Requirement
The credit score requirement for FHA loans is lower compared to traditional loans. (500 credit score for a 10% down payment and 580 credit score for a 3.5% downpayment)
3. Low Closing Cost
FHA loans allow sellers to pay up to 6% of the closing cost, which means you can buy your home with less closing cost than traditional loans.
About Anew Lending
To qualify for an FHA loan, you need to work with an FHA-approved lender, like Anew Lending, who will appraise the property and pre-approve your loan.
Anew Lending Mortgage is a reputable mortgage lending company in Sacramento, CA, with experienced mortgage experts available to provide you with support and help you secure your home.
They provide easily accessible loans with flexible requirements to help homeowners buy or refinance their homes at the best rate.
To learn more about the FHA mortgage program, contact Anew Lending at 916-655-9381 or visit their website.
