Buying your first home?
Federal Housing Administration (FHA) loans have been helping people become homeowners since 1934. With one of these loans, the FHA – which is part of the U.S. Department of Housing and Urban Development (HUD) – insures the loan so we can offer you a better deal! If you’re interested in one of these loans, learn more about them and what you can expect when receiving one from BayCoast Mortgage.
What Are FHA Loans?
FHA loans are home mortgages insured by the government and issued by an FHA-approved lender or bank. Compared to conventional loans, FHA loans feature smaller minimum down payments and are available to those with lower credit scores. To qualify for these loans, you’ll have to meet the current FHA loan requirements, such as having a FICO score in the appropriate range and a debt-to-income ratio under a certain percentage.
Since the government insures these loans, banks are incentivized to offer loans to first-time home buyers and those with lower credit scores. These loans’ federally insured status means banks don’t have to take on as much risk when providing a mortgage to homebuyers who don’t have a long track record of paying off debts. By reducing the risk for banks, FHA loans give more Americans a chance to buy homes with affordable terms.
Ready to take the next step towards homeownership?
Discover the benefits of FHA Loans through BayCoast Mortgage. With flexible guidelines and low down payments, these loans have assisted homeowners since 1934. Find out if you qualify and start your journey today.