Can I Get a No Money Down FHA Loan?
August 14, 2023
The Federal Housing Administration (FHA) does not offer a true "no money down" loan option like some other loan programs. However, they do offer a low down payment option compared to conventional loans.
FHA loans typically require a minimum down payment of 3.5% of the purchase price of the home with the right credit score. This means that if you're buying a house for $240,000, you would need to make a down payment of at least $8,400. The down payment can come from your own funds, a gift from a family member, or a down payment assistance program. If your credit score is below the standard requirement set by you lender you may have to increase your down payment to 10% of the loan.
It's important to note that while the down payment requirement for FHA loans is relatively low, you will still need to cover closing costs, which can include fees for appraisals, inspections, title insurance, and more. These costs are separate from the down payment.
Additionally, FHA loans have mortgage insurance premiums (MIP) that borrowers are required to pay, both upfront and as part of their monthly mortgage payments. This insurance helps protect the lender in case the borrower defaults on the loan.
Please keep in mind that loan program guidelines can change over time, so it's a good idea to consult with a mortgage lender or FHA-approved lender for the most up-to-date information on FHA loan options and requirements, especially if you are considering purchasing a home today.
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Annual Income Requirements for FHA Loans
Good Credit History Helps Get FHA Loans
Stay Informed About Your Mortgage Closing Costs
FHA loans typically require a minimum down payment of 3.5% of the purchase price of the home with the right credit score. This means that if you're buying a house for $240,000, you would need to make a down payment of at least $8,400. The down payment can come from your own funds, a gift from a family member, or a down payment assistance program. If your credit score is below the standard requirement set by you lender you may have to increase your down payment to 10% of the loan.
It's important to note that while the down payment requirement for FHA loans is relatively low, you will still need to cover closing costs, which can include fees for appraisals, inspections, title insurance, and more. These costs are separate from the down payment.
Additionally, FHA loans have mortgage insurance premiums (MIP) that borrowers are required to pay, both upfront and as part of their monthly mortgage payments. This insurance helps protect the lender in case the borrower defaults on the loan.
Please keep in mind that loan program guidelines can change over time, so it's a good idea to consult with a mortgage lender or FHA-approved lender for the most up-to-date information on FHA loan options and requirements, especially if you are considering purchasing a home today.
------------------------------
RELATED VIDEOS:
Annual Income Requirements for FHA Loans
Good Credit History Helps Get FHA Loans
Stay Informed About Your Mortgage Closing Costs
See Your Credit Scores From All 3 Bureaus
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