What is an FHA Loan?
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When you’re ready to start preparing for your first home purchase, a Federal Housing Administration (FHA) Loan with Central Bank is a great option. A FHA Loan is a type of mortgage loan that is backed by the government. They require a lower credit score and are popular among first-time homebuyers who are seeking to buy a home with a minimal down payment. An FHA Loan term varies from 15 to 30 years and can be more flexible than conventional loans.
FHA Loan Requirements
FHA loans have clear benefits, but they also have more requirements than conventional loans. To qualify for an FHA loan, your home must:
- * Be your primary residence
- * Be occupied within the first 60 days of closing.
- * Be appraised and inspected to ensure it meets the property standards.
Additionally, you must meet other requirements, including
- * Proof of employment
- * A debt-to-income ratio under 43%
- * Mortgage Insurance Premium (MIP) on the home
FHA Loan Benefits