Welcome to Our FHA Loans Page
Are you dreaming of owning a home but struggling to save up for a hefty down payment? Do you have less-than-perfect credit? Our FHA Loans are designed to help you achieve your dream of homeownership with flexible eligibility requirements and attractive benefits. Let us guide you through the process and explore the wonderful world of FHA loans!
What are FHA Loans?
FHA loans, short for Federal Housing Administration loans, are a popular option for first-time homebuyers and those with limited financial resources. Established in 1934, the FHA is a government agency that aims to make homeownership more accessible to a broader range of individuals by providing mortgage insurance to approved lenders. This insurance mitigates the lender's risk, enabling them to offer more lenient qualifications and lower down payment requirements compared to conventional loans.
Key Benefits of FHA Loans
1. Low Down Payment: One of the most significant advantages of FHA loans is the low down payment requirement. With as little as 3.5% down, you can get closer to owning your dream home without waiting years to save for a substantial down payment. For strong credit or if you want to buy a condo, Conventional loans offer 3% down payment for first time homebuyers. Call you Lakeside Bank mortgage loan consultant for details.
2. Multi-Unit Purchases: FHA loans are the best way to buy a 2–4unit residential property with a loan down payment of 3.5%. Down payments for Conventional loans for multifamily residential properties is between 15% and 20%. You will have to live in the multifamily property as your primary residence.
3. Flexible Credit Requirements: FHA loans are more forgiving when it comes to credit scores. Even if you have less-than-perfect credit or a limited credit history, you may still be eligible for an FHA loan. FHA allows for credit scores down to 500.
4. Competitive Interest Rates: FHA loans typically offer competitive interest rates, making homeownership more affordable in the long run. Check with us to get details on whether an FHA loan or conventional mortgage has the best rate for you.
5. Assumable Loans: FHA loans are assumable, meaning that if you decide to sell your home, the new buyer can take over your FHA loan, potentially locking in a lower interest rate and saving them money.
6. Streamlined Refinancing Options: If you already have an FHA loan, you can take advantage of streamlined refinancing options, making it easier and more cost-effective to refinance your mortgage.
Who Qualifies for an FHA Loan?
FHA loans are available to a wide range of borrowers, and eligibility is not limited to first-time homebuyers. To qualify for an FHA loan, you must meet the following criteria:
1. Credit Score: While FHA loans are more lenient with credit requirements, having a credit score of 580 or higher will make the approval process smoother. Borrowers with credit scores between 500 and 579 may still be eligible but will need to provide a higher down payment.
2. Debt-to-Income Ratio (DTI): Your DTI ratio, which compares your monthly debt obligations to your gross monthly income, should typically be below 43%. In some cases, lenders may accept slightly higher DTI ratios. Lakeside can accept DTI rations up to 55% and sometimes more under certain circumstances.
3. Steady Employment and Income: Lenders will evaluate your employment history and income stability to ensure you can comfortably make mortgage payments.
4. U.S. Citizenship or Permanent Residency: FHA loans are available to U.S. citizens and permanent residents.
Our FHA Loan Application Process
Applying for an FHA loan with us is a straightforward and transparent process:
1. Pre-qualification: Begin by completing our simple pre-qualification form online or by contacting our team directly. We'll assess your financial situation and provide you with an estimate of how much you may be able to borrow.
2. Documentation: Gather the necessary documents, including proof of income, employment history, and any other required information. We will guide you through the documentation process.
3. Loan Application: Once you're ready, submit your FHA loan application to us. Our experienced team will review your application promptly.
4. Loan Approval: Upon approval, we will work diligently to finalize the loan terms and conditions, ensuring that you are comfortable and informed throughout the process.
5. Closing: Congratulations! You're now ready for the exciting step of closing on your new home.
Get Started Today
At Lakeside Bank, we believe that homeownership should be within reach for everyone. Our FHA loans open doors to opportunities and make your homeownership dreams a reality. Contact us today or fill out our online form to get started on your path to homeownership with an FHA loan. Let us help you find the perfect loan solution that suits your needs and enables you to embrace the joys of owning a home.