SaveRight Mortgage

FHA loans are a good fit if you have a credit score under 680. FHA guidelines allow the minimum 3.5% down payment to be a gift from a family member. The minimum credit score for an FHA purchase loan is 500. FHA loans are the most lenient in terms of your credit history. Like conventional mortgage loans, FHA loans also permit someone who will not be an occupant of the home to be a co-borrower/co-signer on the mortgage to help you qualify for the mortgage, if you can’t qualify on your own.

• Maximum LTV (loan-to-value) on Purchase: 96.5%
• Minimum down payment on a purchase: 3.5%
• Down payment may be gifted to you by family
• Allows non-occupying co-signers to help you qualify
• Fixed-Rate 30 and 15-year Terms Available
• Adjustable Rate Mortgage (ARM) Available
• Cash out refinances allowed up to 85% LTV
• Can buy an owner-occupied property of 1-4 units with just 3.5% down

FHA Mortgage insurance: There are two types of mortgage insurance on an FHA loan:

1. UFMIP (upfront mortgage insurance premium) of 1.75% of the loan amount.
2. Monthly PMI/MIP is required for the entire life of the loan for down payments of less than 10% on FHA mortgages originated after June 3, 2013. The annual premium is .85% for down payments of less than 10% and .80% for down payments of 10% or more.

If you put down at least 10% on a purchase, or have 10% or more equity on a refinance the monthly PMI will drop off your loan after 11 years. If you had less than 10% down, or equity of less than 10% on a refinance the monthly MI is permanent for the life of the loan. For this reason, many will refinance into a conventional mortgage once they are able to do so.

For credit scores of 500-580, the minimum down payment required on an FHA loan is 10% of the purchase price. If your score is 580+, the down payment requirement is only 3.5%.

2019 FHA County Loan Limits: