Tired of renting and looking to purchase a home of your own? There are many questions many first time home buyers or first time FHA loan applicants have. Here is a list of some of the most frequently asked questions about FHA mortgages.
Is There An Income Limit For FHA Loans?
No. FHA mortgages are not designed specifically for one type of financial situation or another. You cannot “earn too much” with the FHA single family home loan program. All wage earners are encouraged to explore their FHA loan options.
Is There A First-Time Home Buyer Advantage Or Preference With FHA Mortgages?
While an individual lender may offer certain perks for first-time home buyers, the FHA single family home loan program itself does not have a first time home buyer advantage or a first time home buyer discount. All applicants are treated the same in this respect.
Is There A Bad Credit FHA Home Loan?
FHA home loan standards require a minimum FICO score of 500 for basic eligibility. However, lender standards also apply and you may find that FICO scores starting at 620 or better may be required depending on the lender. FHA loan standards require all borrowers to financially qualify and your credit history, financial obligation payment record and other factors will be very important for loan approval.
Is There A Down Payment Required For FHA Mortgages?
Yes. The minimum down payment is 3.5%, but your credit score and other factors (including lender standards) may affect the amount of the required down payment.
Can I Buy A Fixer-Upper With An FHA Mortgage?
Yes. Qualified applicants can apply for something known as the FHA 203(k) Rehabilitation Mortgage, which allows borrowers to finance the purchase and improvement of a property. The property must meet FHA minimum standards once the improvements are done–the home must be brought into code compliance, etc. But a fixer-upper loan is possible with the right participating lender.
Do I Have To Get A Fixed Rate FHA Mortgage? Are Adjustable Rate Mortgages Available?
FHA single family home loans feature adjustable rate mortgages, growing equity mortgages, and more. You don’t have to apply for a fixed rate mortgage loan-qualified borrowers have a range of options open to them with a participating FHA lender that offers them.
Can I Refinance My FHA Mortgage At Some Point?
Yes, FHA home loans offer refinancing loans featuring fixed rates, adjustable rates, etc. Qualified borrowers age 62 and older also have the option of applying for an FHA Reverse Mortgage or HECM loan. Talk to a loan officer about this option if you are interested in finding out more about the FHA HECM loan (Reverse Mortgage) option.
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