First-Time Home Buyers Who Choose FHA Mortgages
FHA Home Loans For First-Time Home Buyers Feature Lower FHA Credit Score Requirements
First-time home buyers and repeat borrowers alike are able to apply for an FHA home loan with the following FHA guidelines applicable for FICO scores:
- FICO scores 580 or higher: eligible for maximum financing and a 3.5% down payment.
- FICO scores 500-579: Eligible for FHA loan consideration with a 10% down payment.
FHA Home Loans Allow All Qualified Borrowers to Apply
First-time home buyers do not need to worry that they earn “too much money” to qualify for an FHA mortgage.
It is true that other government-backed mortgages may have an income or need requirement-the USDA mortgage loan program is a great example of one that does.
But FHA mortgages are not need-based loans and do not have an income ceiling. The couples, millennial home buyers, single house hunters, and other borrowers looking for a home with affordable monthly mortgage payments and no income limit should definitely explore their FHA mortgage loan options.
FHA Home Loans Have No Penalty for Early Payoff
Many shopping for a first home or starter home, condo unit, mobile home, or townhouse—all of which you can buy with an FHA mortgage—have considered making larger mortgage payments each month to pay down the mortgage faster.
FHA loan rules forbid the borrower being penalized for doing so; you cannot be charged a fee to pay off the loan early.
The lender may have specific requirements for making the final payments on the loan amount when paying off early, so you will need to discuss this with your loan officer to see what is required for your final payment.
Are you ready to speak to a participating FHA lender to learn more about your loan options? Don’t delay-you will be surprised at the number of options open to you including FHA construction loans for building a house from the ground up. Get ready to own your very first home!
Homebuyers Benefit From the Work Done by Fannie Mae
HUD 4000.1 is Sometimes Called the FHA Handbook
Credit History Is Presented as Your FICO Score
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