There are many reasons why potential homeowners look to the Federal Housing Administration for a loan when it comes to buying their home, and when looking for a broker who can bring you the most benefit out of these programs, you can be sure that SLC Mortgage Experts is the company you need. Our brokers have been working closely with the FHA for many years, and put our experience to task when it comes to bringing you a safe and affordable mortgage.
What is an FHA Loan
The Federal Housing Administration, or FHA, is an agency of the U.S. government formed to assist lending companies in assisting on payment for mortgage insurance. As we all remember the housing market collapse, and the amount of homes that went into default, the mortgage companies got hit the most with the ill effects, leaving them out an almost incalculable amount of money, with the assistance of the FHA, loans have become more safeguarded, allowing us to present you with more attractive interest rates, and less intense qualification processes, bringing benefit both to our company and those we represent.
Why Get One?
As stated above, with the insurance put into place at the federal level, lending companies and mortgage brokers can present you with much more attractive means when it comes to getting your mortgage. This means lower interest rates, lower monthly payment, and an entry wall that has been lowered to allow those with even less than perfect credit easily obtain a mortgage. At SLC Mortgage Experts we ensure that we bring you all the services needed to get you the mortgage you need for your home, and we bring all the skills and tools needed to do so.
Minimum Credit Scores
With the FHA providing insurance on the loans and mortgages provided, there are certain boundaries that cannot be crossed, even if your mortgage company is prepared to. This means that there are minimum credit scores needed to obtain an FHA loan. If you’re looking for a down payment of 3.5% then you need to have a credit score in the range of 500+. If your down payment increases, then the necessary credit score decreases. This balance ensures that the FHA isn’t providing insurance on ultra-high risk mortgages, but still lowers the bar of entry when it comes to obtaining your mortgage loan.
With the information above you can get a general idea of the down payment that you’ll be looking at when it comes to your FHA loan. There is a minimum entry of 3.5% of the entire purchase price, which can be very attractive to middle income families in the area, and SLC Mortgage Experts works with you to ascertain your credit score, the bar of entry and the minimum down payment that you’ll need to obtain your mortgage. At SLC Mortgage Experts we work closely with you to ensure that you can get the mortgage you need at the right price.