Benefits of Applying For and FHA Mortgage at Commonfund Mortgage
- Lower Down Payments – Most FHA loans are 3.5% down. This is lower than other loans, and may be paid in the form of a gift from a family member, a 401K loan or savings.
- Lower Closing Costs – You can finance in almost all of your closing costs using seller concessions in many scenarios. For example, a $150,000 purchase price would allow up to $9,000 of closing cost assistance through seller concessions.
- Easier Credit Qualifying – Accepts credit scores as low as 580.
- No Credit – If you do not have a credit score you can still apply. For borrowers with no credit score, 3 verifiable alternative credit references will be needed. For example, rent, car insurance, utilities, cable.
- Already Own a Home – FHA loans are not limited to first time homebuyers, but you must owner-occupy the home.
- Higher Debt to Income Range – In general FHA loans have more lenient debt-to income ratio thresholds than other mortgage types, and allow you to go up to 55% of your gross income in many situations.
- Manufactured Homes – Manufactured homes are FHA financeable.
- New Employment – Employment contracts are acceptable as proof of income as long as you have a paystub within 60 days of closing.
Not so perfect credit?
FHA may be the loan program for you. FHA accepts the lowest credit score out of any of our mortgage programs and allows you to cover the most closing costs. Many times the loan can be structured so that you are only paying your 3.5% required down payment.
Even if your credit isn’t where you want it to be just yet, our mortgage specialists will help guide you to get into your home.
Are you looking to buy your first home?
If you are looking to purchase your first home, there might be a lot of things holding you back from pulling the trigger on the place of your dreams. Mortgage loans shouldn’t be the ultimate factor in whether or not you purchase. With an FHA loan through Commonfund Mortgage your down payment can be as low as 3.5% of the purchase price. This makes starting the next step in your life something you can look forward to instead of something you dread!
What is an FHA Loan?
An FHA Loan is a home mortgage that is insured by the Federal Government through the Federal Housing Administration or FHA. This agency is a division of the Department of Housing and Urban Development (HUD).
HUD requires that all FHA borrowers pay for mortgage insurance. This insurance protects the lender in the event of a mortgage default by the borrower. There are two types of mortgage insurance when using an FHA mortgage, upfront Mortgage Insurance and monthly Mortgage Insurance. Mortgage Insurance is paid every month as part of the total mortgage payment. You do not have to pay for the upfront Mortgage Insurance out of your pocket at closing, as it is financed into your loan amount.