FHA
Flexible loan. Lower requirements.
FHA loans are generally more flexible for credit, income, and down payment requirements, therefore FHA loans are a great choice for a borrower who cannot qualify for a conventional loan. Insured by the Federal Housing Administration, FHA loans were originally designed for first-time buyers with less-than-perfect credit or past credit issues. Today, FHA loans are available to borrowers of all kinds—even homeowners looking to refinance. We work with direct sellers/servicers for Fannie Mae, Freddie Mac, and Ginnie Mae.
• 3.5% Down Payment, or 0% Down Payment if using the Down Payment Assistance Program
• 580 Minimum Credit Score
• 43% Preferred Debt-to-Income (DTI), but possibly up to 56.99% DTI with Compensating Factors (larger down payments, large cash reserves, very low debt-to-income ratios, 720+ credit score, minimal increase in housing payment). Note that the separate ratio for housing DTI needs to be under 46.99%
• Manual Underwriting is available.