The primary goal of the federal housing administration (FHA) is to improve the housing market and protect lenders if a borrower was to default on their mortgage payments. FHA was created as part of the national housing act and became part of the department of housing and urban development. The FHA has become the largest insurer of mortgages in the United States. Primary Residential Mortgage, Inc – Nima Rezvan is proud to offer great rates and flexible payment options on Stamford, Norwalk and Fairfield FHA loans.
FHA Loan Uses
A Stamford, Norwalk and Fairfield FHA loan can be used for a number of different purposes including refinancing existing FHA mortgages, home renovation projects, first mortgages and purchasing a new home. Cash out refinance options are available to borrowers in need of capital for home repairs or to consolidate debt. Streamline refinance loans reduce interest on current loans.
Credit Requirements for FHA Loans
FHA loans in Stamford, Norwalk and Fairfield offer relaxed credit requirements and lower down payment options that make them easier to qualify for. Potential buyers could qualify for a FHA loan with a down payment of 3.5% of purchase price and credit score of 620. If a buyer doesn’t have adequate savings then a family member is able to gift the funds for the down payment. Given the ease of qualification, FHA loans are very popular among first time home buyers in Stamford, Norwalk and Fairfield.
Stamford, Norwalk and Fairfield FHA Loan Requirements:
- Down Payment: A down payment of 3.5% of purchase price is the minimum down payment allowed. If a borrower’s credit score does not support this then a higher down payment may be required.
- Income Requirements: A debt to income ratio of 43% is generally required. A higher debt to income ratio could be potentially approved.
- Property Requirements: Properties purchased through the FHA program must meet certain safety and soundness requirements set forth by the FHA.
- Credit Score: Typically the minimum credit score is 620 however borrowers with credit scores below 620 could potentially qualify for a FHA Choice mortgage program.
FHA Mortgage Insurance Premiums
There are two mortgage insurance premiums that are required in Stamford, Norwalk and Fairfield FHA loans. The first is the upfront premium of 1.75% of purchase price. Buyers have the options to pay at the closing or roll the premium into the mortgage. The second is the monthly insurance premium. This monthly premium falls between 0.80 and 0.85% and will be based on loan to value ratio, loan amount and length of mortgage.
Work with an FHA Mortgage Expert
Primary Residential Mortgage, Inc – Nima Rezvan is committed helping clients with all of their Stamford, Norwalk and Fairfield FHA needs, we also service the whole state of Connecticut. If you are purchasing your first home or looking to refinance your current FHA loan with a lower rate then I may be able to help you. Contact me today with any questions you have on FHA loans and if you would like to get pre-qualified for a FHA loan.