Let’s start with some facts. FHA loans are a mortgage issued by the Federal Housing Association (FHA), which is a U.S. government agency. These loans are insured by the FHA and have smaller down payments than conventional loans. These are a great choice for 1st time home buyers with lower down payment requirements and easier credit qualifications.
Like any loan, they come with lender qualifications such as:
- FICO score 620 or greater
- 3.5% down payment
- 2 years of steady income and proof of employment
The pros of using an FHA loan are:
- Great interest rate
- High loan to value (96.5%)
- You can buy up to a four unit using FHA
- Easier to qualify based on debt-to-income ratio
Contact Todd Probasco VP Mortgage Lending at Lakeside Bank 708.205.2983 or email t.probasco@lakesidebank.com for more information.
