FHA loans are backed by the Federal Housing Agency (FHA) and are often the best choice for first-time homebuyers. Our mortgage team at Supreme Lending can help you determine if you quality for an FHA home loan in Allen, Texas.
It’s usually easier to qualify for an FHA loan than a Conventional loan. With an FHA loan, an acceptable minimum credit score is 580; for a Conventional loan, you usually need to have a score of at least 620.
With a higher credit score, you can make as low as a 3.5% down payment on your loan. Additionally, FHA loans are designed to help homebuyers who may not qualify for other types of mortgage loans, so interest rates are usually reasonable. With an FHA loan, you are required to pay mortgage insurance for the life of the loan, unless you put 10% down.
An FHA loan can be a perfect way for homebuyers with less-than-perfect credit to become homeowners. Talk to our mortgage professionals in Allen today about applying for an FHA loan.