FHA Loans: The Dream of Home Ownership is Within Reach
FHA loans are a unique home financing option for clients looking for a low down payment and flexible terms. At Land Run Mortgage, our certified mortgage professionals educate clients on FHA loans and other home financing option so they can select the best-suited option. FHA loans are designed to help clients purchase homes who otherwise might not qualify for a conventional home loan. FHA loans are also available for home loan refinancing. Our mortgage professionals serve clients in Oklahoma City, Edmond and surrounding Oklahoma. Contact us today with any questions and schedule a complimentary consultation about your finances and goals as a home owner.
What is an FHA Loan?
FHA loans were first created in 1934 to help encourage private lenders, like Land Run Mortgage, to lend to a wider spectrum of clients. FHA loans are a type of government-backed nonconventional loan. They are insured through the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development. They differ from conventional loans, which are also funded through private lenders, but are not insured in any way through the government. Because they are backed through the government, FHA loans and other types of nonconventional loans often have less stringent approval requirements than conventional loans.
FHA Loan Benefits
An FHA home loan has several unique characteristics to consider, including:
- Approval for many clients with less-than-perfect credit who are unable to get conventional loan approval
- Fixed-rate interest with flexible terms of 15 or 30 years
- Minimal closing costs
- Minimal down payment of as low as 3.5%
- Available to first-time home buyers or clients who have purchased a home previously
- May be used for 1-4 unit properties and even for manufactured homes
Who is Eligible for an FHA Loan?
The FHA itself has minimal set requirements for FHA loan approval. At Land Run Mortgage, we evaluate each client’s eligibility on an individual basis. Basic approval requirements include:
- A credit score of 580 or higher
- Note: We can approve clients with scores as low as 500 in some cases with a higher down payment.
- Proof of ability to pay for monthly loan premium
- A down payment of at least 3.5% on the loan value
- Clients with credit scores lower than 580 should expect a 10% down payment.
- Ability to pay monthly mortgage insurance premium (MIP) for loans with 20% or less initial down payment
- Clients must be willing to live in their homes as their primary residence
How Do I Get Started?
No matter where you are in the process of buying a home, Land Run Mortgage can help. Our mortgage professionals provide personal attention and invaluable knowledge about FHA loans in our community. Contact us to discuss your unique financial situation and explore your financing options. We proudly serve clients in Oklahoma City, Edmond and surrounding Oklahoma communities.