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Designed for homebuyers with a low-to-moderate income, FHA loans are a great option for many people. Qualified homebuyers benefit from a lower down payment requirement (as low as 3.5%), lower monthly premiums, and lower closing costs. It’s an attractive loan for first-time homebuyers or repeat homebuyers with low income or credit.
A down payment on an FHA loan can be as low as 3.5% with a qualifying credit score of 580 or higher. Otherwise, a 10% down payment is required which is still much lower than a conventional loan.
FHA loans offer some of the lowest credit requirements of any loan. Borrowers would typically need a credit score of 620 or higher on a traditional loan, but the FHA minimum is 500.
A higher debt-to-income (DTI) ratio is allowed with an FHA loan. Borrowers can have monthly debt payments costing up to 50% of their income.
An FHA loan requires mortgage insurance of any borrower who puts a 10% down payment or lower. This insurance cannot be canceled, but it is often lower than traditional private mortgage insurance.
Ruoff's mobile app, Loan Butler, can help you receive your pre-approval letter quickly. Plus, you can upload all required documents straight into the app to save you time and energy.
Lock in your mortgage rate early and stay in the loop. Your Ruoff Home Mortgage Loan Officer will keep you and your agent updated every step of the way with our Milestone Updates.
Thanks to Ruoff's Digital Closing Experience, you'll only spend 10 minutes with your loan officer and agent finalizing the purchase at closing.
The Federal Housing Administration (FHA) offers loans that they back/insure to protect investors. Because of this backing, FHA loans give homebuyers that might not otherwise qualify, an opportunity to morrow money to purchase a home.
Of course, the better your credit score, the more likely you can get pre-approved for a loan. The minimum credit score is 500 to qualify for an FHA loan.
There are no specific minimum or maximum income limits to qualify for an FHA loan.
Yes. FHA backed loans require as little as 3.5% down payment. Your down payment can come from gifted funds.