FHA loans with flexible credit guidelines.
FHA loans are insured by the Federal Housing Administration. They were created to help more people become homeowners, so the credit and down payment guidelines are more flexible than many other programs.
Who it's for
- First time buyers who are still building their credit history
- Buyers rebuilding after a past credit event
- Buyers with modest savings who want a lower down payment option
How it works with me
- FHA loans include mortgage insurance that protects the lender, which is what allows the flexible guidelines.
- The home must meet FHA property standards, which the appraiser checks during the appraisal.
- FHA allows sellers to contribute toward eligible closing costs, which your agent and I can plan for when writing your offer.
What you'll need
- Two years of employment history, or an explanation of any gaps
- Pay stubs, W2s or tax returns
- Bank statements showing your down payment and closing funds, including any gift funds
Every situation is different. Send me your scenario and I will tell you honestly which programs fit, and compare them side by side in writing.
Programs, terms and eligibility vary and are subject to credit approval, underwriting guidelines and program availability. Not all applicants will qualify. This is not a commitment to lend. Laila Smith, NMLS #844202, HomeTown Lending, NMLS #2712965. Equal Housing Opportunity.
Questions buyers ask me
Is FHA only for first time buyers?
No. Anyone who meets the guidelines and will live in the home as their primary residence can use FHA, including repeat buyers.
Can I use gift money for an FHA loan?
Yes. FHA allows gift funds from eligible family members and others, as long as the gift is properly documented.
Can I refinance out of FHA later?
Many buyers do. If your credit and equity improve, refinancing into a conventional loan may let you remove mortgage insurance. I will review that with you when the time is right.