FHA

Federal Housing Administration (FHA)

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. Check the link for access to current
loan limits in your county https://entp.hud.gov/idapp/html/hicostlook.cfm

  • -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.