Federal Housing Administration (FHA) Loans
FHA loans are an excellent source of financing for lower down payment loans combined with credit blemishes. FHA will allow as low as 3.5% down payment on purchase loans. The maximum loan amount differs in each county. Click here for access to current loan limits in your county.
- Credit scores as low as 580 with as little as 3.5% down payment.
- Two (2) years discharge date from bankruptcy
- Four (4) years since foreclosure action
- Assumable loans to qualified borrowers
Fixed Rate Term
30, 25, 20, 15, and 10-year terms.
The fixed rate loan is fully amortized over the term of the fixed rate period.
Adjustable Rate Terms
5/1, 3/1 – This loan is amortized over a 30-year term.
The initial fixed rate period may be either three years or five years. At the end of the fixed period, the interest rate will adjust annually, with a cap on how high and low the rate may adjust. There is a lifetime cap of 5% over the starting interest rate and an annual cap of 1% at each adjustment period.
The annual adjustment caps are lower on the FHA & VA adjustable-rate mortgage loans than most conforming and non-conforming loan programs.