FHA Loans
Government-insured financing for buyers with lower credit scores or limited savings, often with a down payment as low as 3.5%.
An FHA loan is a mortgage insured by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development. That insurance lets lenders offer more forgiving qualifying guidelines, which is why FHA is one of the most popular paths for first-time buyers.
Lenders like the ones Gene works with through PBT Bancorp originate the loan. The FHA itself doesn't lend money; it insures the loan against default.
Who FHA loans are built for
FHA guidelines tend to be more forgiving than conventional on credit scores and debt-to-income. If your credit is still being rebuilt or your savings are thin, an FHA loan can get you into a home sooner. Many buyers qualify with as little as 3.5% down.
The trade-off: mortgage insurance
FHA loans carry mortgage insurance: an upfront premium plus an annual premium folded into your payment. On most FHA loans today, that annual premium stays for the life of the loan unless you put more down or later refinance into a conventional loan.
So there's a real trade to weigh. FHA is often easier to qualify for, but that ongoing insurance costs you month after month. Gene will run the numbers both ways so you can see FHA sitting right next to a conventional loan.
A strong fit if…
- Your credit is still improving
- You have limited money for a down payment
- You're a first-time buyer who wants flexible qualifying
- You've had a past credit event and need a more forgiving program
Worth weighing
- FHA mortgage insurance often stays for the life of the loan
- The home has to meet FHA property standards
- As your credit and equity grow, refinancing to conventional may lower your cost
Run your numbers
Compare other options
Is FHA the right fit for you?
Gene will look at your goals and compare your options with no obligation. Get pre-qualified or call to talk it through.