FHA loans are an attractive option especially for first-time homeowners in Summit, as well as all of New Jersey, because they are insured by the Federal Housing Administration (FHA) the guidelines are broad in scope. Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. Typically, the borrower can be approved with 3.5% down vs 20% that is required for other loan programs.
What is an FHA Loan?
An FHA Loan is a mortgage that meets FHA guidelines and is provided by a mortgage lender that is approved by the Federal Housing Administration. The lender underwrites the loan and insure’s the loan with FHA.
Benefits of FHA Loans
The main benefit is the lower down payment option but there are other reasons to go with an FHA insured loan such as excellent rates, credit for closing costs, and higher debt to income ratios just to name just a few.
FHA Loan Eligibility
FHA Loans have more flexible requirements than a traditional conventional mortgage. There are programs for borrowers with as low as 500 credit score available.
FHA Loan Limits
Different counties have different limits on how much you can borrow for an FHA Loan.
Get Pre-Approved for an FHA Loan
If you are a first time home buyer, or simply seeking a lower down payment in Summit, or anywhere in New Jersey, contact Lincoln Mortgage Solutions LLC at (201) 405-2187 for more information, or fill out the form on this page. I’m here to help you!