FHA Home Loan may get you into a home with a low down payment.
One of the biggest challenges first-time homebuyers encounter is saving for a substantial down payment on a home.
An FHA loan offers a government-insured option with flexible terms. Even seasoned homeowners may need time to prepare for a new home purchase. Fortunately, FHA loans can help some buyers achieve their dream home with a lower down payment requirement.
What is an FHA loan?
FHA loans are mortgages insured by the U.S. Federal Housing Administration, making homeownership more accessible by requiring a lower down payment. Lenders such as banks and credit unions provide these loans, allowing buyers to purchase a home with as little as 3.5% down.
With conventional loans, a lower down payment typically requires the borrower to obtain private mortgage insurance (PMI). This insurance protects the lender if the borrower defaults and adds an additional cost to monthly payments until the loan balance reaches 80% of the home’s value. In contrast, FHA loans do not require PMI since they are backed by the U.S. government. However, the FHA loan application process may involve more thorough scrutiny to ensure eligibility and compliance with program requirements.
What is required for an FHA loan?
Applying for an FHA loan requires many of the same documents as other loan types, including proof of employment history, a property appraisal, and details about your debt-to-income ratio. However, the FHA loan process includes additional requirements. For example, buyers generally need to provide a down payment of at least 3.5% of the purchase price, though a higher down payment may be required for credit scores below 580. FHA loans are also restricted to the borrower’s primary residence.
FHA loans often have more lenient credit requirements, as long as other factors show that the borrower manages their finances responsibly. Lenders review each application individually and may request extra documentation or explanations. This flexibility allows them to assist buyers with lower credit scores or shorter credit histories who might not qualify for other loan options.
How FHA Loans Work
Have questions?
Give us a call! One of our mortgage specialists would
happily answer all your questions.
**Greenly Mortgage LLC is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.
Purchase your home with as little as 3.5% down payment (compared to 20% required on most loans).
30-, 25-, 20- and 15-year terms are all available with fixed rates.
5-year adjustable rate mortgage available.
Pay your mortgage off at any time without pre-payment penalties.
Frequently Asked Questions
Why choose Greenly Mortgage?
At Greenly Mortgage, we understand the ins and outs of mortgage financing and we know the importance of savings. Greenly Mortgage has worked hard to build a company full of mortgage experts and people experts, meaning we understand that a mortgage isn’t just a loan, but a step towards the dream of homeownership, and a cash-out refinance isn’t just a lower rate, but a means to send your children to college. We get it. We use our advanced technology to provide low rates, transparent pricing, easy online applications, and most importantly great client service.
What types of mortgages does Greenly Mortgage offer?
We offer the following loan options:
Fixed Rate Mortgage
Federal Housing Administration (FHA)
First-Time Home Buyers.
Jumbo Home Loans
Veterans Affairs
Rehab
Low Down Payment Options
Investment Property
Refinance
If you are looking for a loan not listed here, please contact us. We will be happy to help you and guide you on your mortgage journey.
Do you offer construction or commercial loans?
Yes, we can do construction loans for the builder, and the borrower.
What is the minimum FHA loan credit score Greenly Mortgage requires?
A 580 score is needed for FHA. If you have a score lower than that, please reach out to us and let us figure out what is best for you.
Where can we lend?
Ohio and Florida
