What is an FHA home loan?
The Federal Housing Administration is a government entity that backs financing on home loans. With the backing of the FHA, lenders are able to offer attractive terms to certain clients. Many first-time home buyers use FHA loans due to its low down payment requirement and low interest rates.
A few key features of FHA Loans are:
- Only 3.5% down payment required
- No minimum credit score requirements
- Lower interest rates compared to conventional lending
- Expanded underwriting guidelines, making qualification easier
- Manufactured homes are OK
- One-Time-Close construction loans with only 3.5% down
- Shorter seasoning for derogatory credit events (bankruptcy, foreclosure, etc.)
- 2-4 Unit properties with only 3.5% down!
- Streamlined Refinances
The FHA is funded through a mandatory insurance premium on all FHA loans. The premium is 1.75% of the loan amount that can be financed into the loan + .8-.85% of the loan amount yearly (paid on a monthly basis with your normal mortgage payment. FHA loans do have a maximum loan amount limit depending on county and unit count. Check out the resources below
One common misconception is that FHA is only for first-time home buyers. That is not the case! As long as you are buying a primary residence, you will be eligible for FHA financing.
Did you know you can also purchase a 2-4 unit property with an FHA loan as long as you live in one of the units? We can help you leverage an FHA loan to purchase a multiple unit investment!
How we can help you secure your FHA loan in Whitefish, Kalispell or the greater Flathead Valley
Government lending has many guidelines in place that can be difficult to navigate. Our company is extremely knowledgeable on the nuances of FHA loans. When acquiring an FHA loan in Montana, it is important to work with an industry-leading expert to make sure there are no surprises. FHA loans require higher minimum property standards. We make sure to review every property to ensure they meet FHA requirements. Rural properties on well and septic also need special attention when dealing with a government loan.
Need cash out? FHA loans allow cash-out refinances to help consolidate debt, home improvements, and many other reasons. Let us put together a worksheet to compare a new cash-out refinance to your current mortgage.
Has your situation improved or have rates dropped? FHA allows streamlined refinances, letting us skip the underwriting process to help lower your rate and monthly payment.
Looking for other loan options?
Please see our homepage to learn more about all of the options for Whitefish, Columbia Falls, Bigfork & Kalispell mortgages. If you're interested in other loan options, please see our conventional home loans, VA loan, jumbo loan & USDA loan products.
Helpful resources:
Do I Qualify?
To determine if you qualify, lenders review your total monthly debt (proposed housing payment + regular monthly debt) as a percentage of your total gross monthly income. The acceptable percentage (DTI) will vary depending upon the specific loan program for which you apply.