Enjoying less rigorous lending standards and lower down-payment requirements make FHA loans popular with Mortgage Borrowers. An FHA loan is a mortgage product that is insured by the Federal Housing Administration. The FHA is an agency within the U.S. Department of Housing and Urban Development. In this type of loan, the borrowers pay for mortgage insurance, which protects the lender if the loan defaults.
Why Get an FHA Loan from Marc Shenkman of Priority Financial Network?
Because of the regulations governing FHA Loans, Marc Shenkman is able to be flexible in the qualification process and offer a great interest rate on approval. Minimum credit scores for FHA Loans vary but to give you the general idea, the typical schedule looks something like:
- A mortgage with a down payment as low as 3.5% requires the borrower to have a credit score of 580 or higher.
- A mortgage of 10% requires credit scores between 500 and 579.
- Those with credit scores under 500 are typically ineligible for FHA loans.
Don’t give up your search for the right mortgage if you have a credit score below 500 but feel that an FHA Loan is for you. FHA’s has been known to make allowances under certain circumstances for those with fair credit. If you have non-traditional credit history, you should contact Marc Shenkman for a free consultation with pre-approval to get started on finding the best rate possible.
What are the other perks of an FHA?
- FHA borrowers can use their own savings for the down payment
- Alternative down payment sources include the following: gifts from family members, a local government down payment assistance program, or a state grant.
Because the FHA is an Insurer, not a Lender, borrowers need to get their loan through an FHA-Approved Lender, such as Marc Shenkman. Not all FHA-Approved Lenders offer the same interest rate and costs — even on the same FHA Loan. Get the best interest rate and costs for your FHA when you call Marc Shenkman of Priority Financial Network.
Annual premiums for FHA loans
- 15-year loan, down payment (or equity) of less than 10%: 0.7%
- 15-year loan, down payment (or equity) of 10% or more: 0.45%
- 30-year loan, down payment (or equity) of less than 5%: 0.85%
- 30-year loan, down payment (or equity) of 5% or more: 0.8%
Schedule your free FHA Loans consultation by calling (818) 936-3888 or by filling out our convenient “Call Me” form and we will be in touch with you upon receipt.