FHA Loans

At MOD Mortgage, we're committed to guiding you through the myriad of loan options available to find the one that fits your needs perfectly. Federal Housing Administration (FHA) loans are an excellent choice for many homebuyers, offering lower down payments and more lenient credit requirements. Here's what you need to know about securing an FHA loan with us.

What Are FHA Loans?

FHA loans are government-backed mortgages insured by the Federal Housing Administration. They are designed to help first-time homebuyers and those with less than perfect credit scores achieve the dream of homeownership. FHA loans offer several advantages that make buying a home more accessible and affordable.

Features and Benefits

  • Lower Down Payments: With FHA loans, down payments can be as low as 3.5% of the purchase price, making this an ideal option for those who have saved less for their down payment.

  • Flexible Credit Requirements: FHA loans are more accessible to borrowers with lower credit scores. You can qualify for an FHA loan with a credit score as low as 580.

  • Competitive Interest Rates: FHA loans come with competitive interest rates, potentially lowering your monthly mortgage payments.

  • Higher Debt-to-Income Ratios Allowed: FHA loans are more lenient regarding your debt-to-income ratio, making it easier for a broader range of people to qualify.

  • Gift Funds Allowed: Down payment and closing costs can be covered by gift funds from family, employers, or charitable organizations.

Eligibility and Requirements

To be eligible for an FHA loan, you typically need:

  • A credit score of at least 580 for the 3.5% down payment option. Scores between 500-579 may require a 10% down payment.

  • A steady income and proof of employment.

  • A debt-to-income ratio (DTI) of less than 43%.

  • The home must be the borrower's primary residence and meet HUD's property standards.

How to Apply

  1. Pre-Approval: Start by getting pre-approved to see how much you might qualify for.

  2. Documentation: Gather necessary documents, including ID, Social Security number, employment information, bank statements, and tax returns.

  3. Application: Complete our application process online or get in touch with one of our loan officers for assistance.

  4. Property Appraisal: An FHA-approved appraiser will assess the home to ensure it meets FHA standards.

  5. Closing: Finalize your loan at the closing meeting, where you'll sign paperwork and take ownership of your new home.

Why MOD Mortgage for Your FHA Loan?

Choosing MOD Mortgage means getting personalized service tailored to your unique situation. Our experienced team will walk you through the FHA loan process, ensuring you understand every step. With our commitment to making homeownership accessible and affordable, we're here to support you in finding the perfect loan.

Get Started Today

Interested in learning more about FHA loans or ready to begin the application process? Contact us now to speak with one of our FHA loan experts. Let MOD Mortgage help you make your homeownership dreams a reality.