FHA Loans


FHA Loans?

An FHA home mortgage loan is a loan insured against default by the Federal Housing Administration. The program came about during The Great Depression as a way to encourage home-ownership during hard financial times. The FHA loan program is still around today and borrowers of all types can still take advantage of all that FHA has to offer.

Because the FHA insures that loan, lenders are more willing to work with borrowers who may not qualify for conventional loans. The qualifying guidelines are much more flexible than other types of loans, especially in regard to credit history. Borrowers with a less than perfect credit history may still qualify under FHA guidelines.

No borrower income limit
Can finance home of 4 or fewer units
More credit score flexibility
Higher debt-to-income ratios (on DU approvals)
Only 3.5% down payment on Purchase loans
Great track record—programs in effect since 1934
Foreclosure: Three years after the final date of foreclosure, borrowers can obtain an FHA loan, provided you have since maintained good credit
Bankruptcy: Two years Chapter 7 from the date of your bankruptcy discharge, borrowers can obtain an FHA loan, provided you have since maintained good credit

FHA loans are ideal for first-time home buyers because of the lower down payment options and more flexible qualifying guidelines. FHA also offers a refinance program for current homeowners. With an FHA home mortgage loan, you can refinance up to 97.5% of your home’s value or an FHA cash-out refinance of up to 85%.

Contact one of Ennkar’s experienced mortgage professionals to see if an FHA home mortgage loan is right for you or to be pre-approved.