- Minimum credit score: 580
- Minimum down payment: 3.5%
- DTI: Max of 56.9%, Approval will vary based on customer circumstances
- Gift funds: Allowed with stipulations
- Seller Concessions: Up to 6%
- Mortgage Insurance (MI): Required
- Occupancy type: Primary only
- Lower interest rates than other loan types
- Lower credit score requirements
- Higher DTI rations than conventional
- Renovation loans (203K) are available
- Monthly MI is typically lower than conventional
- WDOs, water tests & sewer inspections not required
- Up-front MI fee of 1.75% (rolled into the loan)
- Unless 10% is put down, MI will last for the life of the loan
- Any repairs noted on the appraisal are required to be fixed
Why Choose FHA?
FHA Loans are a wise choice if you have enough income, but lack the down payment required on a conventional loan. FHA also offers discounts on HUD homes to teachers, law enforcement, firefighters and EMTs through a Good Neighbor Next Door program.
We Are an FHA-Approved Lender
Due to our state-of-the-art technology and compliance measures, First Option was a quick approval for underwriting FHA Loans. You can trust our dedicated team to guide you through the FHA mortgage process step-by-step.