FHA Loans are most commonly used for “less than perfect credit”
Financing is available as low as 500 Qualifying Credit Score (10% equity or down payment)
Maximum financing is available with 580 Qualifying Credit Score (3.5% equity or down payment)
Most common uses of FHA Financing are –
- First Time Buyers
- Low Down Payment Buyers
- Low and Mid-Range Credit Scores
- Foreclosure Event >3 Years and <7 Years from Application
- Chapter 7 Bankruptcy >2 Years and <4 Years from Application
FHA financing is also available DURING and immediately after Chapter 13 Bankruptcy. While in bankruptcy you will need 12 months of timely payments made to the court appointed trustee and permission from the court to purchase or refinance.
After successful discharge, FHA is available right away (with manual underwriting required).
FHA does require mortgage insurance as part of the monthly payment. The combined mortgage insurance factor and interest rate available often will make FHA the best option available despite the required insurance.
If you have been declined for financing elsewhere FHA is a viable option to consider.
Please reach out to us so that we can provide you with more details to help determine if this will be the right solution for you.