FHA Loans
Affordable Home Financing Made Easy
Supreme Mortgage: your trusted source for affordable homeownership with FHA Loans.
Discover the Power of FHA Loans
At Supreme Mortgage, we understand that achieving homeownership can be challenging, especially for first-time buyers. That’s why we offer Federal Housing Administration (FHA) loans, providing affordable financing solutions with flexible requirements.
The Buying Process
Once you have completed our Apply Now form, we will guide you through a process consisting of four steps.
Review
We will review your application and then contact you to discuss the next steps in the loan process.
Pre-Approve
Once pre-approved, we’ll help you select the loan that meets your needs. We will then order an appraisal and send initial loan disclosures.
Verify
You provide us with documentation of the information you submitted in your application. We’ll verify and approve your loan for closing.
Close
After signing the closing documents, we’ll coordinate the loan closing and fund your loan. It’s just that simple!
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Meeting Your Homeownership Goals with FHA Loans
Our experienced loan experts at Supreme Mortgage will guide you through the FHA loan requirements, assisting you in understanding and meeting the necessary criteria for a successful FHA loan application.
FHA Loans
What Is a Federal Housing Administration Loan?
A Federal Housing Administration (FHA) loan is a mortgage insured by the Federal Housing Administration, a government agency within the U.S. Department of Housing and Urban Development (HUD). FHA loans are designed to make homeownership more accessible, particularly for first-time buyers and individuals with lower credit scores or limited down payment funds.
Fixed-Rate Mortgage
How Federal Housing Administration Loans Work?
FHA loans work by providing lenders with mortgage insurance, which mitigates the risk associated with lending to borrowers with less-than-perfect credit or smaller down payments. This insurance enables lenders to offer more favorable terms, such as lower down payment requirements and more lenient credit qualifications.
FHA loans are available for purchasing or refinancing a primary residence, including single-family homes, multi-unit properties, condominiums, and manufactured homes. The FHA sets specific guidelines regarding loan limits, debt-to-income ratios, and credit scores. By adhering to these guidelines, borrowers can take advantage of the benefits and flexibility that FHA loans offer.
FHA Loan Requirements
To qualify for an FHA loan, borrowers must meet certain requirements.
Minimum Credit Score: While FHA loans are more flexible than conventional loans, there is still a minimum credit score requirement. Typically, a credit score of 580 or higher is needed to qualify for the low down payment option, but borrowers with credit scores between 500 and 579 may still be eligible with a higher down payment.
Down Payment: FHA loans offer a low down payment option, often as little as 3.5% of the purchase price. This is significantly lower than the down payment requirements for conventional loans, making homeownership more attainable for many borrowers.
Stable Employment and Income: Borrowers are required to demonstrate a stable employment history and sufficient income to cover the mortgage payments, including other existing debts. Lenders typically consider factors such as employment stability, income level, and debt-to-income ratio.
Property Requirements: FHA loans have specific property requirements, ensuring the safety and habitability of the home. The property must meet certain standards outlined by the FHA, including minimum property standards and appraisal requirements.