FHA loan programs are insured by the Federal Housing Administration. These types of loans only require a 3.5% downpayment and the money is allowed to be gifted.
FHA loan facts:
- On a purchase or Rate/Term Refinance, your credit score must be at least 640
- “N/A” FICO is no longer eligible with Wells Fargo
- A Cash-Out Refinance, your credit score must be 660 for any loan amount >$417,000 regardless of property type, # of units or location
- There is no minimum loan amount
- A valid social security number is required for all borrowers
- All borrowers whose income is being used to qualify, are taking title to the property and obligated on the Mortgage & Note
- A co-signor’s income or credit cannot be used as the application’s primary source of income or credit.
- Maximum financing permitting for 1-unit properties when the borrowers are related
If you have any quesitons about FHA loans, please leave a comment or send us a message.