If you are looking for a lending product that features easy credit qualification and affordable rates, an FHA loan could be just what you need.
With this type of mortgage, you can buy a home in Massachusetts with a down payment as low as 3.5%.
What is an FHA Mortgage?
Through the FHA loan program, even borrowers without perfect credit can qualify for competitive rates and other great benefits.
What makes this possible is the Federal Housing Administration (FHA), which guarantees each of these loans.
You are welcome to apply for an FHA mortgage in Boston as a first time or returning homebuyer.
Many borrowers believe that the program is restricted to first time homebuyers only, but that is not the case.
Benefits of FHA Loans in
Here are some of the exciting advantages of FHA mortgages:
- Down payments for FHA loans range between 3.5% and 10%.
- Flexible credit qualifications open the door to affordable homeownership for a wide range of borrowers with differing financial situations.
- Even without perfect credit, you can qualify for an affordable interest rate.
- FHA loans can feature fixed interest rates or adjustable interest rates, depending on your preference.
- You may use an FHA loan to buy a home, build a home, refinance a home, or make upgrades or repairs. Debt consolidation is also possible with an FHA loan.
Eligibility for FHA Mortgages in
The basic qualification criteria for an FHA mortgage is as follows:
- To be eligible to make a 10% down payment, your minimum credit score must be 500. If you want to make a 3.5% down payment, your minimum credit score must be 580.
- Your debt-to-income (DTI) ratio should be 43-45% or lower.
- You must have a clear record on the Credit Alert Verification Reporting System (CAIVRS).
- You will need to have at least two years of steady employment you can document (the most recent two years).
- If you have been foreclosed on in the past, at least three years must have passed since it happened.
- If you have declared bankruptcy in the past, at least 12-24 months must have passed since then.
The property you want to buy needs
to meet these requirements:
- The intended use of the property must be as your primary residence.
- The house needs to have been built on or after June 15, 1976.
- The home must be on a permanent foundation.
- Types of homes you may finance with an FHA loan include single-family homes, 2-4 unit multifamily homes, and HUD-approved condominiums.
How much money you can borrow with an FHA mortgage varies depending on your location and the type of home you are purchasing.
Apply Now for a Massachusetts
Are you ready to buy a home in Boston or elsewhere in Massachusetts with 3.5% down and competitive rates? To apply for an FHA mortgage now, please call (508) 223-5206.