What is an FHA Loan?

• Low Down Payment: FHA loans require as little as 3.5% down, making it easier for buyers to afford a home.
• Flexible Credit Requirements: Borrowers with credit scores as low as 580 may qualify with 3.5% down, and those with scores between 500-579 may still qualify with a 10% down payment.
• Higher Debt-to-Income Ratios: FHA loans allow a higher DTI ratio, accommodating borrowers with existing financial obligations.
• Competitive Interest Rates: FHA loans typically offer lower rates compared to conventional loans, reducing long-term costs.
• Assistance for First-Time Buyers: These loans are especially popular among first-time homebuyers but are available to repeat buyers as well.
• Gift Funds Accepted: Down payment and closing costs can come from gifted funds, making it easier to secure financing.

FHA loans are ideal for a variety of borrowers, including:

• First-time homebuyers looking for an affordable entry into the market.
• Buyers with a lower credit score or limited credit history.
• Individuals seeking a low down payment option.
• Those recovering from financial setbacks such as bankruptcy or foreclosure (after a waiting period).

To qualify for an FHA loan, borrowers typically need to meet the following:

1. Steady Income: Proof of reliable employment and income history.
2. Credit Score: Minimum credit score of 580 for 3.5% down or 500-579 with 10% down.
3. Primary Residence: The home must be the borrower’s primary residence.
4. Property Standards: The property must meet FHA minimum safety and livability standards.
5. Mortgage Insurance: Borrowers must pay an upfront mortgage insurance premium (UFMIP) and annual premiums, which protect lenders in case of default.

At Millennia Mortgage Group, we’re committed to helping you navigate the FHA loan process with ease. Our team will:

• Guide you through qualification and documentation requirements.
• Match you with the most favorable terms tailored to your needs.
• Answer your questions every step of the way to ensure a smooth process.