The Federal Housing Administration(FHA) offers mortgage insurance on loans provided by the FHA certified lenders. The FHA insures the loans on multi-family and single-family houses in the US. It’s one of the largest residential mortgages in the whole world, insuring many properties since its inception in 1934. Learn information about Phoenix, AZ.
- If your credit score is above 580, you’ll need to have 3.5% down payment
- If your credit score is 500-579, you’ll need a 10% down payment
- Must have mortgage insurance premium(MIP)
- Debt-to-income ratio must be less than 43%
- The house must be the primary residence of the borrower
- As a borrower, you must have proof of employment and steady income
FHA loans are mortgages that are insured by the Federal Housing Administration. They let borrowers buy their dream homes with a down payment as little as 3.5%. The loans are common with first-time borrowers.
This type of loan is an ideal option for a first time homebuyer who might not have saved enough down payment. Even those borrowers who have suffered from foreclosure and bankruptcy might be eligible for an FHA loan. The loans are issued by FHA approved lending institutions like Desert Springs Mortgage, LLC. Discover facts about What is an FHA Loan.
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