Why FHA?

If you are a first time home buyer looking for an affordable loan option, or someone who may not have conventional financing as an option, a Federal Housing Administration (FHA) loan is the perfect product for you.  

As part of the United States Department of Housing and Urban Development (HUD), FHA requirements are not as rigid, making it easier for borrowers on a tight budget with limited down payment funds. FHA offers several options to borrowers at more favorable terms than conventional loans; for example, down payment assitance programs to lower the amount of cash needed for qualified borrowers, and the FHA Renovation Loan Program for purchase or refinance of homes in need of renovation.

Benefits

  • Lower down payment required compared to most conventional loans
  • Lower credit requirements than most conventional loans
  • Shorter waiting times after a negative housing or credit event, i.e. foreclosure or bankruptcy
  • Streamline refinances available in some cases provide even lower interest rates

Requirements

  • Max loan limits based on location
  • No bankruptcies in the preceding 2 years (with some exceptions)
  • No foreclosures, short sales, or deeds-in-lieu in the preceding 3 years (with some exceptions)
  • 1.75% up-front Mortgage Insurance Premium at origination
  • 11-30 years of annual Mortgage Insurance Premium, regardless of Loan-to-Value
  • Subject property must be primary residence. Cannot be used for secondary/rental properties

 

 

Additional Programs

Get Started with Your Alliance Home Loan

When you need proper financing, turn to an Alliance Home Loans officer for help. With our easily obtainable FHA programs, you never have to worry how you will purchase your first home. Contact us today to get started.