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Hometown Mortgagehome
FHA Loan

FHA Loans

Built for first-time buyers and borrowers rebuilding credit.

First home? Lower credit score? FHA is almost always the most forgiving loan on the menu, and one we know cold.

About FHA Loans

FHA loans are insured by the Federal Housing Administration. They let you buy with a lower credit score and as little as 3.5% down, which makes homeownership reachable for a lot of buyers who can't qualify for conventional financing yet.

Key benefits

3.5% down payment

On a $250,000 home, that's $8,750 down, a fraction of what most conventional loans require.

Flexible credit requirements

FHA allows scores as low as 580, and we can sometimes go to 500 with a larger down payment and compensating factors.

Gift funds allowed

100% of your down payment and closing costs can come from a gift from family, employer, or an approved down-payment assistance program.

Assumable loans

FHA loans are assumable, if rates climb and you sell years from now, a qualified buyer can take over your loan at your rate. That's a real selling feature.

The process

  1. Free pre-qualification with a soft credit pull
  2. We verify income, gift letters, and assets
  3. FHA appraisal to confirm the property meets HUD's minimum standards
  4. Underwriting and closing (typically 25-30 days)
Questions we get a lot

FHA FAQ

  • If you put less than 10% down, FHA annual MIP stays for the life of the loan. Most borrowers refinance into a conventional loan later once they have 20% equity, we track this for you and reach out when the timing is right.
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