Mortgage Mike
FHA Loan Specialist
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Government-Backed & Flexible

Own a Home With Just 3.5% Down

FHA loans are designed for real people with real credit. Lower down payment, flexible credit requirements, and government backing that makes lenders say yes.

3.5%
Minimum Down
580
Min Credit Score
50%
Max DTI Ratio
96.5%
Loan-to-Value

Why FHA Loans Work

Flexibility where you need it most

Low Down Payment

Just 3.5% down on a $200k home is $7,000. Much more achievable than 20% ($40k).

Credit Flexibility

Scores as low as 580 with 3.5% down. Even 500-579 can work with 10% down.

Higher DTI Allowed

Debt-to-income ratios up to 50% (sometimes higher). Car payment and student loans OK.

Gift Funds Welcome

Your entire down payment can be a gift from family. No need to save it all yourself.

Credit Rebuilders

2 years after bankruptcy, 3 years after foreclosure. Fresh-start friendly.

Government Backed

Federal Housing Administration insures your loan. Lenders take less risk = easier approval.

Is FHA Right for You?

FHA works great if you're...

🏠

First-Time Buyer

Haven't owned a home in 3+ years, or never? FHA is designed for you.

πŸ’°

Limited Savings

Can't scrape together 20%? 3.5% is way more realistic.

πŸ“Š

Credit Under 680

Good (not perfect) credit? FHA doesn't punish you with sky-high rates.

πŸ’³

Have Some Debt

Car payment, student loans, credit cards? FHA is more forgiving with DTI.

The Trade-Off: Mortgage Insurance

The one downside (and it's not a dealbreaker)

How FHA Mortgage Insurance Works

Because you're putting less than 20% down, FHA requires mortgage insurance. This protects the lender if you default. You pay two types:

1. Upfront Premium (UFMIP)

1.75% of loan amount, rolled into your mortgage. You don't pay it out of pocket.

Example: $200k loan Γ— 1.75% = $3,500 added to loan balance

2. Annual Premium (MIP)

0.55% of loan amount per year, divided into monthly payments.

Example: $200k loan Γ— 0.55% Γ· 12 = ~$92/month

πŸ’‘ The Good News

  • βœ“ MIP drops off after 11 years if you put 10%+ down
  • βœ“ You can refinance to conventional later and remove it entirely
  • βœ“ Without FHA, you might not qualify at allβ€”small price for homeownership

FHA Loan Process

Same as any mortgage, just easier to qualify

1

Apply & Pre-Approve

Submit income, credit, employment docs. Get pre-approved in 24-48 hours.

2

Shop for Homes

Armed with pre-approval, find the perfect home within your budget.

3

FHA Appraisal

Home must meet FHA standards. Protects you from buying a dump.

4

Close & Move In

Final approval, sign papers, bring 3.5% + closing costs. Keys are yours!

Apply for an FHA Loan

See if you qualify. No commitment, no pressure.

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