“Is an FHA loan right for me?”, “Are FHA loans hard to get?”, “How are FHA loans different?”—we get a lot of questions like this when people are exploring their home loan financing options. And we’re here to answer as many of those questions as we can.
At Luminate Home Loans, we make it our priority to guide you through the best financial decisions, all with your interest in mind. It’s our goal to help you feel informed and engaged throughout the entire lending process.
Let us light the way to homeownership for you.
An FHA loan is a mortgage that is issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). Typically, FHA loans are designed for low-to-moderate income borrowers who are unable to make a large down payment or have a less than ideal credit score.
Because of the low credit score requirements and down payment percentages, this loan option is much easier for most homebuyers to qualify for. Most FHA loans are also quite flexible, and as a buyer, you’ll find that you can use other funds as a means of a down payment (financial gifts, 401k, etc.).
Also, if you have an older home that you're trying to purchase, know that FHA requirements (see below) are a lot more strict than with conventional loans.
WHAT ARE THE BENEFITS OF A
If you have a lower credit score, less money in your savings for a down payment, or have a reasonable debt-to-income ratio, an FHA loan may be perfect for you. When you work with Luminate, you can rest assured knowing we have your best interest in mind. Here are some of the benefits of our FHA loans!
With limited qualifications to qualify, most people will get approved for an FHA loan without a problem.
You only need a 3.5% minimum down payment on an FHA loan.
You can qualify for an FHA loan with a fico credit score as low as 580.
With FHA loans, you can have a much higher debt to income percentage to qualify.
Regardless of your credit score, you’ll benefit from a fixed insurance rate.
Most FHA loans will allow for down payment assistance programs to help with initial costs.
If you don’t know the answer to this question, that’s completely okay! One of our team members will be happy to go over the details with you, but typically you’ll need a fico credit score of 580 or higher and a down payment of at least 3.5%. The best part about FHA loans is their flexibility. We really mean it when we say we want everyone to be able to qualify for a home loan through us!
That’s okay—because our team is here to help guide you every step of the way. We don’t want you to feel left out in the dark, but instead to have complete clarity and transparency throughout your entire loan process.
Here at Luminate Home Loans, we truly believe in our mission and core values. We focus on people like you because we understand that character does count. We stay humble and work hard so that the lending process stays approachable and transparent every step of the way.
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NOTICE TO TEXAS CONSMERS: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.”