An FHA loan provides a government-insured loan with flexible loan options. Even experienced homeowners may need to plan for a long time for a new home purchase. Fortunately, FHA loans may help some buyers get into the home of their dreams with a lower down payment.
What is an FHA loan?
FHA loans are mortgages backed by the U.S. Federal Housing Administration. Lenders, such as Alliance Group Mortgage, that provide FHA loans provide funding for home purchases while requiring a lower down payment. Buyers may get into a new home with as little as 3.5% down.
What is required for an FHA loan?
Many of the same documents are required for an FHA loan that any potential lender will want to see: employment history, appraisal, debt-to-income ration. A few additional stipulations are also attached to the FHA loan process. Buyers may have to bring 3.5% of the purchase price as a down payment. FHA loans are only available for the borrower’s primary residence.
Credit requirements may also be lower for FHA loans, given other factors demonstrate that the borrower is able to manage their money responsibly. Alliance Group Mortgage looks at each individual application and may ask for additional documentation or explanations in order to obtain a favorable underwriting decision. We are often able to work with buyers with a lower credit score or shorter credit history than in other situations.
How FHA Loans Work
- Purchase your home with as little as 3.5% down payment (compared to 20% required on most loans).
- 30-, 25-, 20- and 15-year terms are all available with fixed rates.
- 5-year adjustable rate mortgage available.
- Pay your mortgage off at any time without pre-payment penalties.
FHA Zero Flex
FHA Zero Flex is a unique FHA option offered through Alliance Group Mortgage. The Zero Flex option provides Down Payment Assistance in the amount of 3.5% of the purchase price. This covers the required FHA minimum down payment. This option is available to all borrowers regardless of first time home buyer status or occupation. In addition, there are no maximum income limits for this program. Additional qualifications and restrictions apply. Please reach out to our of our experienced mortgage professionals to learn more.
Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.
**Alliance Group Mortgage is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.