FHA loans are insured by Federal Housing Administration (FHA), a government agency. FHA loan is the most popular low downpayment loan for First Time Home Buyers.
Some of the benefits of FHA Loans include:
- Downpayment as low as 3.5%
- Downpayment can be gifted by parents, children or siblings
- Interest rates usually lower than conventional/conforming rates
- More relaxed underwriting guidelines makes it easier to qualify
Here is how to qualify for FHA loans:
- You must occupy the property as your primary residence. You do not need to be a first time home buyer.
- A minimum credit score of 640 required. In some cases, even a lower credit score can help you qualify.
- Two years employment history is required. If you went to school immediately prior to your job, this condition may be waived
Applying for FHA Loans:
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