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FHA Loan Program


3.5% down payment required — and the down payment can be from a qualified gift

  • Allows a non-occupant family member to co-sign (single-family homes only)
  • Roll in non-structural rehab work for purchases and refinances up to $35,000
  • Do not have to be first time home buyers
  • No income limits
  • Federal mortgage insurance is usually much less expensive than private mortgage insurance (PMI)
  • Property condition standards are much more relaxed than they used to be
  • 30- & 15-year fixed and 3/1 & 5/1 ARMs available
  • 203K Rehabilitation Loan Program

FHA Loan Benefits and Advantages:

Lower Interest Rate – compared to conventional loans, FHA generally carries a lower interest rate. Since the loan is insured by HUD against future default, it is offered a lower rate.

Lower Down Payment – minimum requirement for an FHA loan is only 3.5% compared to 5% on conventional loans. The borrower can also get a “gift” from family members to be used as a down payment on the house.

Lenient Credit Qualifying – required minimum credit score for an FHA loan is lower compared to conventional counterpart. AMCAP Mortgage will extend an FHA loan to borrowers with middle credit scores as low as 620 FICO. FHA loan approval is more relax and easy.

Higher Debt-to-Income Ratio – FHA loans can go as high as 55% debt-to-income (DTI) ratio with an automated underwriting system approval. Conventional loans can only go as high as 43% DTI. What does this mean? This allows the home buyer to purchase a higher sales price home. Lots of times, the higher DTI decides if a borrower qualifies for a home loan or not.

If you are interested in purchasing or refinancing a home but you think you may have some challenges in your income, credit, or other areas, don’t give up. Contact me and we’ll see if an FHA loan might be the right choice to help you obtain the financing you need for the home you want. I get great satisfaction out of helping people become homeowners, and I’d like to see if I can help you.

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