FHA Loan

FHA Loans are government-backed mortgages designed for low-to-moderate income borrowers who may have lower credit scores. They require a lower minimum down payment and are more accessible than conventional loans.

Benefits

  • Competitive interest rates.
  • Various term lengths available.
  • Lower private mortgage insurance (PMI) costs compared to FHA loans.
  • No PMI with a 20% down payment.
  • Flexibility in property type, including second homes and investment properties.

Eligibility/Requirements

  • Credit score of 620 or higher.
  • Stable income and employment history.
  • Down payment of at least 3% (higher down payments lower PMI costs).
  • Debt-to-income ratio (DTI) below 45%.

Here’s an example

Jane, a teacher with a credit score of 650, is looking to buy a new home. She has saved enough for a 5% down payment. She opts for a Conventional Loan with Hometown Mortgage, securing a 30-year mortgage with a competitive interest rate. Her PMI is relatively low due to her credit score and down payment.

Every situation is unique and our team is committed to finding the perfect solution to fit your needs

Fast loan approvals, starting with a soft pull on credit.
Multiple loan options to fit your needs.
Local team with unmatched communication making this the most enjoyable home buying experience possible!