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  4. Is an FHA Loan Right for You?

Finding the right fit when it comes to mortgage loan options can be a daunting task, especially if your credit history is less than perfect. Now, imagine with me a world in which you can find an easier credit qualifying process and low down payment options with a government-secured loan that allows lenders to give you a better deal. That world, dear readers, is here and now, and we in the business like to call it an FHA Loan.

What Is an FHA Loan?

An FHA Loan is a government program, offered by the Federal Housing Administration since 1934, to help people become homeowners.

Who Should Apply for an FHA Loan?

Are you buying your first home and/or looking for more flexible qualification and credit requirements in your mortgage? Have a down payment or equity that’s less than 20%? Want the comfort and security of a government-backed loan? If you said yes, yes and yes, then this type of loan may be exactly what you need.

If you currently have or want to buy a fixer-upper, there’s an FHA Loan option that allows you to buy or refinance a home, fix it up and include all the costs in one loan.

What Are the Features of an FHA Loan?

  • 30-, 25-, 20- and 15-year terms are all available with fixed rates
  • Credit scores as low as 580 may qualify
  • 5-year adjustable rate mortgage available
  • Refinance up to 97.75% of your primary home’s value
  • Buy a home with as little as 3.5% down (primary home)

How Does It Work?

Now, your actual payment will vary based upon your individual situation and the interest rate when you apply. You can also pay your mortgage at any time without pre-payment penalties. How great is that?


FHA Streamline

If you currently have an FHA Loan and want to refinance, you may qualify for an FHA Streamline, which is as easy to use as it sounds! You could get a lower rate on your mortgage without the extensive qualification process. No appraisal and no minimal credit requirements. FHA Streamline is offered as a 5-year ARM (adjustable rate mortgage) or either a 15-year or 30-year fixed-rate loan.

Who Should Apply for an FHA Streamline?

You should, if you’re in an FHA loan now, your current mortgage rate is higher than today’s mortgage rates, and/or you owe more on your mortgage than your home is worth.

Have more questions or want to apply now? Our Home Loan Experts can help you decide which loan option makes sense for you.

This Post Has 34 Comments

  1. Can I get an FHA loan with having a new home built? Is an FHA loan the only option for having less than 20% down payment? It appears that the fees associated with a FHA loan are lower than a conventional fixed loan. Is that so or am I misreading something?

    1. Hi Stephen:

      We only do loans on homes where the construction is already completed. That being said, an FHA loan is not the only one way you can get less than a 20% down payment you can get a conventional loan with as little as 3% down depending on your qualifications. I would also say that fees are very different for everyone depending on the situation. However, I can’t go beyond that because construction has to be completed for us to do the loan. I do wish you luck.

      Kevin Graham

  2. Would we qualify for an FHA? My TU credit score is 613, I make about 25, 000 a year, My gfs score is 584, she makes 96, 000. Is FHA a good option?

      1. Hi Kerry:

        We can certainly help you look into all your possible options. If you would like to apply online, you can do so through Rocket Mortgage or by giving one of our Home Loan Experts a call at (888) 980-6716. Have a wonderful day!

  3. My wife and I have started looking for a house in the $300,000 price range. Our credit scores are over 700. Together we make around $200,000. Can we qualify for a FHA loan?

    1. Hi Michael:

      Based on your credit score, an FHA loan might be a good option, although we would need to pull your credit and take a look at your debt-to-income ratio. You can check out your options online through Rocket Mortgage or call one of our home loan experts at (888) 980-6716.

      Kevin Graham

  4. hello, i am just start looking for mortgage loans, i have around 740 credit score, i’ve been paying my bills on time for the last 4 years, my income is over 55,000 a year, i got a car loan for 50,000 last may 2017, this is my first home buy and it will be my principal residence, im looking for a house about 280,000 in michigan but my concern is the downpayment and closing cost. i’m able to do 3% to 5% down. do you think I can qualify for a loan.? thanks.

    1. Hi Robert:

      I can’t give a definitive yes or no to anyone about whether they qualify on the blog because we ultimately need to get income and asset documentation from you and pull your credit. With that being said, if what you’re telling me is true, it sounds like you’re in good shape. We do offer loan options at 3% down. There would also be options to build certain closing costs into the loan amount keep the upfront cost down for you. If you would like to look into your options online, you can do so through Rocket Mortgage. If you’d rather get started over the phone, you can give us a call at (888) 980-6716 and one of our Home Loan Experts will be happy to talk to you.

      Kevin Graham

  5. I have a credit score of 586 and am looking at a home around $100,000. I have been repairing my credit and have gotten all delinquent accounts removed. I can put about 3% down and currently make over $50,000per year. My Equifax score is 626 and transunion is 586. Can I qualify for a loan

    1. Hi James:

      We can certainly help you look into your options. I’m going to suggest you talk to one of our Home Loan Experts because the qualifying credit score is based on all three credit bureaus including Experian and that seems like a fairly big difference between the other two scores, so I would like someone to talk this through with you and go over options. You can reach us at (888) 980-6716. Hope this helps!


  6. I am looking to buy a home in Naples florida approx $289000 I have $30,000 for down payment my credit score is 740 I have a yearly income of $31,000would I be able to get a fha loan

    1. Hi Mari:

      You’re in good shape from a down payment perspective and if your credit score is right, that works out as well. However, we would need to put all this together in order to determine your approval status by pulling you credit and taking a look at your debt-to-income (DTI) ratio. You can get a preapproval through Rocket Mortgage or by calling one of our Home Loan Experts at (888) 980-6716.

      Kevin Graham

  7. Hello my credit score is 726 I make 3200 a month. My only issue would be down payment. The most I could put down is 3%-5% do you think I would qualify for a loan? I am hoping to buy a home by the end of next year.

    1. Hi:

      You can get a conventional or an FHA loan with a down payment of as low as between 1%– 3.5% depending on your qualifications. If you would like to go over your options online, you can do so through Rocket Mortgage or give one of our Home Loan Experts a call at (888) 980-6716. Hope this helps!

      Kevin Graham

  8. Hey, my highest credit score it 677 and my lowest is 617. I have been on my job for almost three years and I take home about $3,700 per month. I have been paying things off on my credit and I still am so my down payment will be between 3-6%. Will I be able to qualify for a loan?

    1. Hi Calvin:

      We take a look at your median credit score if you’re the only one on the loan. Assuming your median score is 620 or higher, we should be able to take a look at both conventional and FHA options for you. If you’d like to get started online, you can get a preapproval through Rocket Mortgage. Otherwise, one of our Home Loan Experts will be happy to work with you if you give us a call at (888) 980-6716. I hope this helps!

      Kevin Graham

  9. Hi I’m in my sixties and I want to purchase a home that I used to live in the country. My sister and my brother in law Will be with me because of my disability. At my age could quality for a home loan and by helping other family members, my credit have suffered. Together the income would be over 2,000 a month. My sister been out of work as a nurse. She have a couple of surgeries to have. So please let me know whether we need to apply or you way have know another company that can help us. Thank you.

    1. Hi Mary:

      We can certainly help look into your options. You should definitely know up front that the lowest credit score of any borrower on the loan must be 580 or higher, but this may be something we can work with you on if you’re close. I’m going to recommend you get started by talking to one of our Home Loan Experts at (888) 980-6716. Hope this helps!

      Kevin Graham

  10. Me and my fiance’ have low credit scores but our monthly income is 3800 together.we have 15% to put on a house..we found a home for 30,000..do we qualify for an FHA home loan

    1. Hi Danielle:

      It depends on what you mean by low. At Quicken Loans®, we require a minimum credit score of 580 on FHA. That being said, there are things we can do to maybe help you get your score up. I’m going to recommend you check out the tips in this blog post
      . We also have a service in QLCredit where you can pull your report for free without affecting your score and get personalized tips on how to improve it. I’m also going to recommend you go ahead and talk to one of our Home Loan Experts. They may be able to offer you suggestions. You can get in touch with them at (888) 980-6716. Hope this helps!

      Kevin Graham

    1. Hi Diana:

      We can’t help you finance a home that’s already up for sale. Also, it depends on if the home is already built in terms of whether we can help you with financing. Since you’re already working with us, I’m going to have someone reach out to you.

      Kevin Graham

  11. I need info on the streamlined fha home loan. I was never told that when I was going to get an fha home loan with quicken. In fact, the closing costs were going to be near 10K I was told I could get a ARM-when we got down to business then I was told I was not eligible for an ARM.
    I also need to find out what requirements are needed in a home for sale in order to finance it FHA.

  12. I’m wondering if anyone has any knowledge of a lender in Tampa fl who handles an fha loan with a 625 credit score, 70k a year income and about 20% saved for a down payment. I’m self employed but have current tax returns.
    Any help would be great I’m looking for a 100k loan.

  13. An FHA loan can certainly be a good option if your credit score is less than perfect or you’re a first-time home buyer. However, as such loans primarily serve low to moderate income families, there has always been a limit on the size of FHA loan you can avail for where the property is located.

  14. Hi! If you may allow me, I’ll just get some excerpts from your blog to use on my masters degree thesis research about real estates and properties Well written, anyway. ☺ Good job!

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What do you get when you add an easier qualification process to government-backed security?  It’s the FHA Loan, and it’s a trusted equation that can add up to savings!

We’re an FHA approved lender, and we offer one of the best lending programs to give American homeowners flexibility in choosing their home loan.  Does it offer great opportunities for refinancing or purchasing a home?  You bet!  With an FHA Loan, you’ll get access to available features including

  • 30-, 25-, 20-, and 15-year fixed-rate terms
  • Qualification for credit scores as low as 580
  • 5-year adjustable-rate mortgage
  • Ability to refinance up to 97.75% of your primary home’s value
  • Option to purchase a primary home with as little as 3.5% down

The Lowdown

Can you believe FHA has been helping Americans get home loans for a really long time? The early stages of government-backed loans surface nearly 100 years ago in 1934!  And over the past century, this style of home loan has helped millions of people looking to purchase or refinance a home, get a payment rate that suits their best interests.  Hey, if the FHA Loan has been around that long, something must be working!

Is an FHA Mortgage Right for You?

Think you might benefit from the flexibility an FHA Loan could provide to your unique situation?  You might be right!

If you’re looking for less stringent qualification and credit requirements, currently have a down payment or home equity that’s less than 20%, and prefer the security of a government-insured loan, it sounds like the FHA Loan is up your alley!  As an added bonus, you can pay your mortgage at any time without pre-payment penalties.  Cha-ching!

Does This Home Loan Option Work With Your Financial Goals?

You’ve got unique financial goals, and we’re here to work with you on achieving them!  Whether you’re refinancing or purchasing your home, the FHA Loan is an excellent solution for lowering your payment, keeping your payment from rising, and owning your first home.

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