FHA Mortgage Loan

Is an FHA loan right for you?

FHA Loans have specific advantages that make them a desirable option for many home buyers:

  • Required down payment is only 3.5% of the purchase price
  • Money for the down payment can be gifted
  • Bankruptcy or foreclosure does not necessarily disqualify a borrower

If you are shopping for a home and would like to learn more about the benefits and advantages of FHA loans, contact our team at 828-348-1907 today.

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What is an FHA Loan?

An FHA loan acts as a gateway to homeownership for individuals with lower incomes, lower credit scores, or minimal down payments. Borrowers choosing an FHA loan are eligible for a loan with as little as 3.5% down with a mortgage insurance premium. FHA loans have been making homeownership more accessible for decades.

History of FHA Loans

The Federal Housing Administration (FHA) program originated during the Great Depression of the 1930s, when the rates of foreclosures and defaults rose sharply. The FHA is the largest insurer of residential mortgages, insuring tens of millions of properties since 1934 when it was created. Now the FHA primarily serves people who cannot afford a conventional down payment.

FHA Loan Requirements

To qualify for an FHA home loan, you’ll need to meet these requirements:

MIP (mortgage insurance premium) is required.
Also known as Private Mortgage Insurance (PMI), this protects the lender in case you default on your mortgage.

The home must be the borrower’s primary residence.
FHA loans can only be used for a primary residence (instead of an income property or vacation home). An FHA-approved appraiser has to evaluate the property and ensure it meets FHA properties’ Housing and Urban Development guidelines.

The borrower must have proof of a steady income and employment.
These are the employment requirements for FHA loans per the FHA handbook. The standard procedure for FHA-approved lenders is to verify employment with the current employer.

Questions? We can help!

Pros of an FHA Mortgage Loan

  • Low down payment with low credit scores.
  • Lower credit score with a higher down payment. Applicants with credit problems, including bankruptcy or foreclosure in their recent financial history, may still qualify for an FHA loan when they may have been turned down for a conventional loan.
  • A higher debt-to-income ratio (DTI) is allowed.
  • Housing options. An FHA Mortgage Loan can be applied to several housing types: a single-family home, a multifamily home with up to four units, a condominium, or a manufactured home that’s on a permanent foundation.
  • No income limits. Higher-income earners with credit problems can qualify for FHA financing with a minimum down payment.
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What Our Clients Are Saying

Zack and Aaron were extremely professional, and walked me through the entire process. It was always very clear what action items were required of me, and I was never caught off guard. Thanks Go Prime, you guys rock!

Adam M.

Zack and his team were efficient, caring, and gave us top-notch service! We were so happy to go with a local lender who knows all the professionals that we would need to help us get through the process. He checked in and offered us personalized support at each step along the way. We couldn’t recommend GoPrime Mortgage more highly!

Ben F.

As first time home buyers, my wife and I were so thrilled to work with Zack and his team at GoPrime Mortgage. He was patient, thorough, and made it very easy for us to get through the process. I would not hesitate to recommend Zack & GoPrime Mortgage at all, especially if the thought of buying a house seems overwhelming.

Kevin W.

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