FHA Loans

What is an FHA home loan?

The Federal Housing Administration (FHA) is a branch of the United States federal government under the Housing and Urban Development umbrella. To help low or moderate-income families afford homes and stimulate the economy, the Federal Housing Administration insures a loan product known as an FHA loan. This lowers the risk for mortgage lenders so that they can offer better loan terms to borrowers. For example, an FHA-insured mortgage usually has lower interest rates and lower down payment requirements.

Arnaiz Mortgage is an FHA-approved lender that can help first-time homebuyers achieve their dreams of property ownership.

Benefits of FHA loans

• Homeownership is more accessible with a minimum down payment of 3.5%.
• Conventional loans typically require credit scores of at least 620. Depending on the lender, FHA loans are an option for those with credit scores as low as 500.
• Enjoy the stability of consistent monthly payments with a fixed-rate mortgage.
• Transfer your FHA loan to a qualified buyer, potentially increasing your home’s marketability.
• Simplified refinancing process that requires fewer documents.
• Reduced interest rates will lower your monthly mortgage payment and decrease the total cost of the loan.
• Many FHA borrowers can share a more significant percentage of closing costs with sellers.
• Financial gift funds from friends or family members can be easily incorporated into FHA home loans.

FHA loans requirements

• Minimum credit score:

A lower credit score of 580 is enough for most FHA-approved lenders. However, we can work with individuals with scores as low as 500 if they have a 10% down payment.

• Debt-to-income ratio: A DTI of 43% or less is recommended for most FHA loans, but exceptions could be made for up to 57%.
• Property requirements: A home inspection by an FHA-approved appraiser is required before a home is purchased with an FHA loan to ensure it meets minimum property standards.
• Mortgage insurance: FHA mortgage insurance premiums are typically required for the life of the loan.
• Occupancy: Must be the primary residence, and the borrower must take up residency within a reasonable timeframe, often 60 days.
• Income: There is no maximum income limit for FHA loans. However, the FHA lender will verify that your income is sufficient to cover monthly mortgage payments and that you have proof of employment.

How to apply for an FHA loan with Arnaiz Mortgage

With our simplified process, your FHA loan approval is right around the corner. Once we receive your information, you will receive a quote, and a loan officer will contact you to discuss your FHA home loan needs.

1. Get Your Quote

To make an informed decision, you need an accurate picture of the mortgage rates you can afford. Fill out the online quote to get a sense of the numbers for your FHA loan.

1. Speak With an Arnaiz Mortgage Representative

Our team can explain the various FHA loan options and terms you can choose from. These are based on income, credit score, DTI, and potential down payment assistance programs.

1. Receive Your Financing

Our goal is to get you approved quickly so you can provide competitive offers to sellers with an FHA loan ready to complete the transaction. The faster you can be pre-qualified, the sooner you can close.

Why choose Arnaiz Mortgage for an FHA loan

Arnaiz Mortgage is uniquely positioned to provide expert guidance and a tailored experience as you search for the right FHA loan product for your needs.

Diverse Options

We offer numerous loan products tailored to any borrower or home purchase price, including adjustable and fixed rates, 15-year, 20-year, and 30-year mortgages.

Lending Experience

We have over 12 years of experience providing FHA loan programs to borrowers who dream of purchasing or refinancing their homes.

One-To-One Service

You will have a dedicated loan officer working with you every step of the way to ensure your questions are answered. Whether they’re about FHA loan requirements, government-backed mortgages, or the housing industry, we won’t leave you in the dark.

Competitive Rates

As private lenders, we can negotiate competitive rates to keep your FHA home loan amount affordable upfront and monthly.

Explore Other Home Loan Options

Are FHA loans not the right option for you? Perhaps another product is the solution you need to finance your home.

Conventional Loans

If you can exceed what an FHA loan requires for down payments or loan limits, then a conventional loan is a great option to buy your home from the right mortgage lender.

VA Loans

VA home loans are available for veterans, active-duty service members, and surviving spouses. These are perfect for those who desire no down payment requirements, no annual mortgage insurance premium, and more competitive rates.

Jumbo Loans

Want to buy a larger home with a conventional loan outside the limits Fannie Mae and Freddie Mac set? A jumbo loan is possible if you have an established good credit score and a solid financial history. However, depending on your down payment, a higher private mortgage insurance premium may be required.