FHA Loans

What is an FHA Loan?

FHA home loans are insured by the Federal Housing Administration (FHA), and can only be provided by lenders approved by the FHA. It’s a popular choice among buyers with limited savings or lower credit scores.
The minimum down payment (3.5%) and credit score requirements (at least 580) of FHA loans are lower than conventional loans.

Mortgage Insurance Premiums

Borrowers who obtain an FHA loan must pay FHA mortgage insurance (this protects the lender from a loss if you default on the loan). You’re required to pay two types of mortgage insurance premiums—an Upfront Mortgage Insurance Premium (UFMIP) and an Annual MIP (charged monthly). This is different from conventional loans, where you have to pay private mortgage insurance (PMI).

FHA Loan Requirements

Have a debt-to-income ratio (DTI) of no more than 50%. This means that your total monthly debt payments can’t be more than 50% of your pretax income (includes debts that you aren’t actively paying).
Pay the upfront mortgage insurance premium (UFMIP). This is usually equal to 1.75% of the base loan amount.
Have bank statements for the last 60 days. You’ll also need to provide documentation for any deposits made during that time (usually pay stubs).
Must have a steady job history (if self-employed, have two years of successful self-employment history; this should be documented by a current year-to-date balance sheet, tax returns, and a profit and loss statement).

Fill Out Application Today!

EquiMaxMortgageLLC makes it easy for you to apply for a home loan.
Once you’re done, one of our Loan Officers will get in touch with you. Our experienced and knowledgeable Loan Officers will help you choose the right home loan for your needs. We aim for 100% customer satisfaction.
Fill out the application today and get started on the path toward purchasing your dream home.