FHA Loans: The Dream of Owning a Home is Within Reach
Do you dream of owning your own home, but worry that the cost of a conventional mortgage is keeping your dream out of reach? Consider an FHA loan, an affordable, federally insured mortgage home financing option with great rates and low down payments. The Blue Square Mortgage team is a local mortgage group that works with several respected private lenders to help clients find home financing options that work for them. Our mortgage professionals will evaluate your finances and your goals as a homeowner to determine quickly if an FHA loan – or other mortgage option – is best-suited for your needs. If you live in Bellevue, Puget Sound, or surrounding Washington, contact us today. We offer complimentary consultations and are ready to help you achieve your dreams.
About FHA Loans
FHA loans are federally insured and regulated in part through the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development. FHA loans were first created in 1934 to provide a different avenue for home financing who might have otherwise struggled to meet qualifications for a conventional mortgage. Unlike non-conventional FHA loans, conventional mortgages are not in any part insured or regulated by the federal government, meaning that private lenders assume all risk involved with each loan they provide.
FHA loans help encourage private lenders to finance a broader range of clients with a vast array of financial history. Because FHA loans are insured, lenders are still paid most of the loan should a borrower default. What that means for you is, more flexible qualification requirements and a minimal down payment, as low as 3.5%.
Eligibility and Requirements for FHA Loan
The Blue Square Mortgage professionals can quickly determine if you and the home you wish to purchase will qualify for an FHA loan. While they are minimal, there are certain requirements to consider as set forth by the FHA:
- You should have a credit score of 580 or higher to receive an FHA loan with a 3.5% down payment. If your credit score is between 500-579, you can still qualify but will need to put down a larger down payment of 10%.
- You should not have delinquent federal debt, such as unpaid back taxes.
- You must provide of ability to make regular loan payments and pay for mortgage insurance premium (MIP).
- The home you purchase should be a single-family home, 1-4-unit home or certain pre-approved condominiums or manufactured homes (trailer homes).
- You will need to live in your home as your primary residence until your loan contract has ended.
Our team will ask pointed questions about your finances and goals to determine if this or other types of conventional or non-conventional home financing make sense for you. We can also facilitate USDA loans, jumbo mortgages and other unique lending options.
Get Started Today
We can help you find the right financing to achieve your goal of owning a home. The Blue Square Mortgage team serves clients in Bellevue, Puget Sound, and surrounding communities. We are focused on creating lifelong partnerships with our clients, and we would love the chance to work with you. Contact us today to learn more about FHA loans.