FHA Loans

 

FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.

FHA loans are an attractive option, especially for first-time homeowners:

  • Generally easier to qualify for than conventional loans.
  • FHA loans can be done on properties that are ineligible for USDA financing
  • Lower down payment requirements (3 1/2% of the purchase price) which can be a gift from a family member.
  • Cannot exceed statutory loan limits (varies depending on location...consult with your Envoy Mortgage loan officer for limits in your area.)
  • Can be used for purchase or refinance of a manufactured home that is a primary residence.
  • You can do a FHA loan two years out of a Chapter 7 Bankruptcy provided that you have reestablished good credit and credit scores meet the minimum threshold.
  • Seller can contribute up to 6% of the sale price towards borrowers' closing costs, prepaids and/or reserves.
  • Present interest rates are equal or better than conventional home loans

While the goal for debt to income guidelines on FHA loans is 41%, higher ratios are possible with automated underwriting approval. Your Envoy Mortgage loan officer can run the automated underwriting for your FHA home loan while you watch to make sure that you are preapproved.