FHA Loan Programs

Asset 1

For the
first-time buyer.

Who is right for a FHA Loan?

FHA loans are built with the first-time homebuyer in mind, but you don’t have to be a first-timer to use them. With low down-payment options, low credit-requirements, and low interest-rates, these programs make it easier to finance a home for just about anyone.  If you agree with any of the below, an FHA loan may be best for you!

First-Time

You're a first-time homeowner.

Down Payment

You want to put a small amount down.

Good Credit

You have an okay credit score.

Remodel

You're looking to remodel your home.

Occupancy

This will be your primary home.

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*See Disclaimers, Assumptions, and FAQs for FHA Loans

WHY ARE FHA LOANS GOOD FOR FIRST-TIME BUYERS?

FHA loans are good for first-time homebuyers because they make owning a home possible for families that might not have a lot saved up yet or don’t have “perfect” credit. With low down payment options and typically lower interest rates than conventional loans, FHA loans are a great option for many first-time homebuyers.

WHEN IS IT BEST TO PUT MORE DOWN ON A FHA LOAN?

Generally it’s not. Putting more down on a FHA loan does not generally improve the terms or interest rate. However, it does mildly improve the Mortgage Insurance Premiums (MIP).

On a 30-year Fixed Loan, there is a slight improvement if the borrower puts 5% (or more down) vs. the minimum required 3.5%.

On a 15-year Fixed Loan, there is a slight improvement if the borrower puts 10% (or more down) v the minimum required 3.5%.

WHAT ARE MY OPTIONS FOR REMODELING WITH A FHA LOAN?

Network Funding offers the Limited FHA 203(k) mortgage program. This program allows for the financing of the remodel of a home, but it is limited in as far as the extent of the work, the timeline and the amount you can finance.

  • Eligible Transactions:
    • Purchase
    • Rate/Term Refinance
  • Eligible Property Types:
    • 1-2 Unit Primary Residence
    • FHA Approved Condominiums
    • PUDs
    • HUD REO
  • Amount of Repairs:
    • Max $35,000 total rehabilitation cost
    • No Minimum
  • Type of Repairs:
    • Minor Remodeling
    • No Structural Repairs

CAN I BUY A VACATION OR INVESTMENT PROPERTY WITH AN FHA LOAN?

Unfortunately, no. FHA loans are for primary residence transactions only.