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While purchasing or refinancing a home can feel like a challenge, there are some options that can help you make the most of one of life’s biggest investments. A Federal Housing Administration (FHA) loan, which is insured by the U.S. government, makes it easier for people to purchase or refinance their homes. Not only do FHA loans offer a lower down payment and low equity refinances, this program also makes it easier for people with less-than-perfect credit to get approved. Let’s take a look at the specific advantages of an FHA loan so you can decide if it’s the right decision for you.

Credit Score

A low credit score could get between you and your new home, but FHA loans allow people with credit scores as low as 580 to receive financing. With these lower credit requirements, it’s much easier to purchase or refinance.

FHA Purchase

FHA loans only require a 3.5% down payment, and they’re offered as both fixed and adjustable rate mortgages (ARMs). Fixed-rate FHA loans are available in 15-, 20-, 25- and 30-year terms, so there is a wide range of options for you to choose from. FHA loans are also available as a 5-year ARM, which will allow you to take advantage of lower interest rates.

FHA Refinance

If you previously purchased a home with a hefty interest rate, refinancing could help you. With FHA loans, you can refinance up to 97.75% of your home’s value, potentially giving you a more manageable monthly payment.

FHA Streamline Refinance

If you used an FHA loan to purchase your home, you might have the opportunity to take advantage of the FHA Streamline Refinance. Even if you owe more than your home is worth, you could potentially refinance to a lower interest rate and a lower monthly payment. The FHA Streamline Refinance program also allows homeowners a simplified application process, including lower credit requirements, no appraisal and less documentation. In other words, you’ll be able to refinance your loan faster than ever before.

If you’d like to learn more about the many benefits of FHA loans, call 800-QUICKEN or leave your questions in the comment section below.

This Post Has 12 Comments

    1. Hi Pierre:

      You’ve come to the right place. I’m going to recommend you give us a call at (888) 980-6716. One of our licensed Home Loan Experts can answer any questions you have. Thanks for reaching out!

      Kevin Graham

      1. Thank you , for a chance to reply to this. I would like to know how to get my credit score up? I mean I’m paying close to $500.00 a month an all bills never been late an with me paying out that much i would rather pay it on something that would be mine or my daughters . i just wish someone had a program. For people 2nd chance. I mean if they. All ways paid there rent on time for 3,5,6 years there should be something some one should do other than letting druggies take over them. Some of those fixer uppers I’d love to have to make me an my daughter a HOME
        THANK YOU.
        GOD BLESS !!

        1. Hi Malinta:

          I’m going to recommend you check out our friends at Rocket HQ. You can get your free VantageScore® 3.0 credit score and report every week. Because it’s your report, you can also get personalized tips on how to improve your score. This blog post also has some great general advice. Finally, once you’ve done those things, I suggest getting into contact with one of our Home Loan Experts at (888) 980-6716. They may be able to come up with a game plan to get you on the road to qualification. Good luck!

    1. Hi Cassandra:

      You’ve come to the right place! To get in touch with our Home Loan Experts, go ahead and fill out this form or call (888) 980-6716 at your convenience and someone will be happy to answer any and all questions you have in order to help you move forward with your mortgage process.

      Kevin Graham

    2. Vi would like to start by asking how do I start to apply for an FHA loan. This meets my requirements. I have been building my credit up for 15 months now but my scores are still in the poor I desperately need a home of my own. Please help. Thank you. U can also reach me at my number

      1. Hi Robin:

        Your median credit score between the three bureaus does need to be 580. If you’re close, we may be able to help you come up with a game plan to get your credit where it needs to be. That being said, we can certainly help you look into your options by applying online through Rocket Mortgage or calling (888) 980-6716 to speak with one of our Home Loan Experts. Hope this helps! I’ve also removed your phone number to protect your privacy.

        Kevin Graham

  1. Hello,
    For the first time in my life I’m thinking about purchasing a home, but I have no clue on how to do this at all. I’ve been staying in one house for three years and do far I’ve paid 38,000. I’m ready to move but looking at the rental prices are way to much. Can you please point me in the right direction? I was reading about a fha loan and I would be interested in doing that.

    1. Hi Katebra:

      We actually have a brand-new resource we’re pretty excited about that’s a step-by-step walk-through the home buying and mortgage process. Go ahead and check it out. From there, you can either go through your options with Rocket Mortgage or by giving one of our Home Loan Experts a call at (888) 980-6716.

      Kevin Graham

    1. Hi Traci:

      You’ve come to the right place. If you want to go over your options and do your application online, you can get a purchase preapproval or complete refinance approval through Rocket Mortgage. If you would rather call in, one of our Home Loan Experts would be happy to take your call at (888) 980-6716.

      Kevin Graham

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