Who It Is For
FHA is a good fit if you have steady income but limited savings, or if your credit has a few marks on it. It is for a home you will live in, not a rental or vacation home.
- First-time buyers with modest savings
- Buyers rebuilding credit after a setback
- Buyers who plan to live in the home as their primary residence
- Buyers who want to combine a first mortgage with down payment assistance
How It Works
With an FHA loan, the government insures part of the loan for the lender. That insurance is why FHA can allow a lower down payment and more forgiving credit. In exchange, FHA loans carry mortgage insurance that you pay as part of the loan.
FHA also has property standards. The home is appraised to FHA guidelines, so condition matters. We will tell you up front what an FHA appraiser looks for.
We compare FHA offers from several wholesale lenders, because each one sets its own overlays on top of FHA rules. If one lender says no, another may see your file differently.
What You Need to Qualify
- Steady, documented income
- A credit history, even if it is not perfect
- Funds for the down payment, which can include gifts or assistance
- Plans to live in the home as your primary residence
- Requirements vary by lender, and we will tell you exactly where you stand
Documents You Will Likely Need
- Pay stubs for the most recent 30 days and year to date
- W-2 forms for the past two years
- Names and addresses of all employers for the last two years
- Bank statements for the last 3 months
- Gift affidavit and proof of receipt, if family is helping
Common Questions
Are FHA loans only for first-time buyers?
No. Anyone who meets the guidelines and will live in the home can use FHA. It is popular with first-time buyers because of the flexible down payment and credit rules.
Does an FHA loan have mortgage insurance?
Yes. FHA loans include mortgage insurance, paid up front and as part of the monthly payment. How long it lasts depends on the loan terms. We will show you the full cost so there are no surprises.
Can I buy a condo in Cape Coral with an FHA loan?
Sometimes. The condo building usually needs to meet FHA approval standards. If it does not, we can look at other options, including our non-warrantable condo lenders.
General information only, not an offer to lend. Requirements vary by lender and program, and all loans are subject to credit approval, income verification, and property appraisal.