FHA product is a government insured loan through the U.S. Federal Housing Administration. This loan is for homebuyers who need a lower down payment option and/or flexible credit requirements. Eligible borrowers can qualify with as little as 3.5% down based on their credit score.
A lender will look at a debt-to-income ratio: FHA indicates this to be 43% or less.
This means that your combined debts should be no more than 43% of your gross monthly income.
There are exceptions and a lender can verify those for you easily.
An FHA loan is insured by the Federal Housing Administration (FHA).
This type of loan helps borrowers who need lower down payments or who have lower credit scores.
Borrowers can qualify for an FHA loan with a down payment of as little as 3.5% based on their credit score.
A lender can verify credit scores for you.
Sellers can pay closing costs up to 6% of the purchase price.
This can include lender fees, property taxes, homeowners insurance, escrow fees, and title insurance.
A lender can provide more information as these can and may vary.