About FHA Loans
Federal Housing Administration (FHA) loans through Police Mortgage provide more opportunities for prospective homebuyers by lowering some of the thresholds to qualify for a mortgage. FHA loans require a lower minimum down payment than many conventional loans, and applicants may have a lower credit score than is usually required.
FHA loans are insured by the Federal Housing Administration and offer borrowers with lower credit scores the ability to purchase a home when conventional financing may not be an option. A popular option for first-time homebuyers, FHA loans can ease some of the obstacles associated with securing a mortgage.
Borrowers can qualify with as low as 3.5% down and a minimum credit score of 580. A credit score below 620 would typically disqualify a borrower from conventional mortgage approval. As long as the borrower can demonstrate gainful employment and afford the required down payment, they could be a likely lending candidate for an FHA loan.
Many borrowers may also choose an FHA loan to purchase a multi-unit building and qualify with rental income from the additional units. FHA loans allow borrowers to qualify with the same 3.5% down payment for 2,3, or 4-unit properties. These government insured loans do require borrowers to live in the home, so they cannot be used for secondary residences or investment properties.
FHA Loan Advantages
The option of a low down payment and more lenient credit score requirements can make FHA loans particularly appealing to first-time homebuyers, although you don’t need to be a first-time home buyer in order to qualify. Some of the benefits of FHA loans include:
FHA Loan Requirements
Although FHA loan criteria are less rigid than conventional loans, there are several thresholds that prospective borrowers will need to meet:
- The home you consider must be appraised by an FHA-approved appraiser
- You can only get a new FHA loan if the home you consider will be your primary residence, which means it can’t be an investment property or second home
- You must live in the home within 60 days of closing
- FHA loans require a 1.75% upfront mortgage insurance premium, but this can be financed into the loan. It does not need to be paid out-of-pocket
End of Watch Loan Protection
Police Mortgage FHA Loans qualify for End of Watch Loan Protection, a special debt cancellation benefit created exclusively for active, full-time Law Enforcement Officers.
For First Responders Who Are Second To None!
Contact us to learn more about our End of Watch Loan Protection.
