The FHA Loan

Kris Howard

NMLS: 1555049

What is an FHA Loan?

An FHA loan is a mortgage designed for low-to-moderate-income borrowers. Insured by the Federal Housing Administration, FHA loans require a lower minimum down payment and credit scores than many conventional loans.

As a fully licensed FHA Direct Endorsement Lender, we offer a wide variety of FHA loan products to meet your specific needs. AnnieMac Home Mortgage has helped thousands of families in need of affordable financing alternatives, and we would love to do the same for you.

Why would an FHA Loan be the best choice for you?

Unlike other loan types, property buyers with credit scores as low as 550* can qualify for an FHA loan. Mandatory down-payments can be set as low as 3.5% of the home’s cost, minimizing the need for available cash up-front. In addition to lower down-payments and interest rates, FHA borrowers can take advantage of unique benefits like Down Payment Assistance programs, Down Payment Gifts, and Up to 6% Seller Assist.

*For credit scores in the range of 550-580 restrictions apply. These restrictions include the following:

  • Max LTV Purchase / Rate and Term Refi- 90% LTV/CLTV
  • Max Cash Out 80% LTVAdditionally, the following overlays apply:
  • 1 Unit – SFR, Attached/Detached PUD, FHA Approved Condos Only
  • New Sub Financing not permitted for any transaction except acceptable existing subordinate financing may be resubordinated on a refinance.
  • FHA TOTAL Scorecard Approval required. Manual downgrade/ Underwrite is ineligible.
  • Standard FHA loan amount only. High Balance not permitted.
  • Must pass FHA QM Points and Fees

Qualifying for an FHA Loan

  • Down Payment

    You will also need to provide a down payment on the home. FHA loans allow for down payments as low as 3.5% of the cost of the property.

  • Mortgage Insurance

    Mortgage insurance is an insurance policy that protects a mortgage lender or titleholder if the borrower defaults on payments, dies, or is unable to meet the contractual obligations of the mortgage. FHA borrowers may receive lower mortgage insurance rates than they would with other loan types.

  • Loan Limitations

    As of 2023, the FHA loan limits for most of the country are $472,030. That limit can go higher in counties where the housing costs tend to exceed the national average - up to $1,089,300 in some cases.

The AnnieMac Promise

Here at AnnieMac Home Mortgage, we take the time to walk you through the mortgage process and ensure that you are financially ready for a mortgage commitment. If an FHA loan is needed and is something you are interested in, we will be there for you every step of the way.