FHA loans are insured by the Federal Housing Administration and can be a great option for people who would normally find it difficult to qualify for a mortgage due to their income level, credit history, or their ability to put down a sufficient amount of down payment. For borrowers with a credit score of 580 or higher, these loans allow a down payment of just 3.5% of the total cost of the home. For those with a credit score between 500 and 579, a 10% down payment is required.
Whether you need a reduced down payment, or have not-so-perfect credit, an FHA loan remains one of the easiest loans to obtain today, benefiting first-time home buyers, as well as those who plan to make substantial repairs and need additional cash set aside for those improvements.
But there are qualifying factors for both the borrower and the home you choose. FHA loans require that a FHA-approved appraiser conduct an appraisal and it must meet certain standards of condition.
While a conventional loan typically requires a down payment of 20 percent, the down payment on an FHA loan can be as low as 3.5 percent.
Furthermore, the source of the funds used for a down payment can be (in part or whole) a gift from a family member, as well as funds obtained through a grant from a state or local home buyer’s assistance program.
Closing costs include an appraisal, a credit report, title expenses, and more, and can often be covered by the seller, or the lender themselves. A home seller may, for example, agree to cover all or part of the closing costs as part of the negotiated price. Closing costs can also be included in the loan, although a higher interest rate may apply.
Mortgage Insurance for an FHA loan is a two-part process: an initial premium (1.75 percent of the base loan amount) paid upfront, and an annual premium broken into monthly installments, included as part of the total monthly loan payment. The upfront premium is typically included in the loan. The total amount of the loan, as well as the years financed will determine the annual/monthly premium installment. Borrowers who make a larger down payment can typically reduce mortgage insurance fees, as they have personally assumed more of the risk with a larger down payment.
The Gill Group has been successfully securing FHA financing for our clients for over two decades.
Contact The Gill Group today and find out if you qualify for a FHA loan! A consultation with a member of our team can help you quickly identify if you meet the loan requirements for an FHA loan.
I can’t say enough about the level of excellence that Jason Gill has exercised through our entire relationship over the past 5 years. One of the most seasoned Mortgage Professionals I know. I made the change to working with Jason exclusively after an old associate dropped the ball and resulted in the loss of a few of my clients. I have never looked back and my clients ARE RAVING FANS of his. Not only does he know his stuff, he’s a very nice man, really good people. I would recommend Jason Gill and his team in a heart beat.Toni P.
Working with Jason and his team has been an easy experience – especially because going through getting a mortgage can be a confusing process. If I was ever confused or needed walking through a process, I always got a quick response and an explanation that was simple to understand. Jason is especially impressive. I called him one time to ask him how much we should to put to see exactly what we could afford. I caught him while he was driving and he actually did all the math in his head! (as a non-math person, I was especially impressed). He said he would double check the numbers when he got into the office and he was right on. When we decide to refinance, we will definitely be calling The Gill Group to get us through the process. Highly recommended!Karla J.
Jason as his team were awesome. Even when the was a set back, they worked hard to find me another great lender when an issue was discovered with the unit and still got me a decent rate. I’d DEFINITELY do business with them again; they made it so easy, even when I was out of the country!! Thank you Gill Group!Janet C.
Jason, Brandy, Renee, Wilma and the entire team made our mortgage process a breeze from application to closing. As first-time homebuyers of a fixer-upper with a short close, they coached us through every anxiety-ridden step and calmed our nerves with each question we had. We shopped around and evaluated six lenders and The Gill Group came through with the best options for us, saving us several thousands of dollars in the end. Everyone on the team was highly responsive, knowledgeable, flexible and most importantly- kind!Nickie K.
We had the pleasure of working with Jason and his team twice over the last year. They helped with our mortgage for our new house in Jan of 2017 then they reached out to us around Sept to let us know the rates had dropped so we refinanced. Not sure if that’s a common thing but it was certainly appreciated. Process was seamless both times and we certainly appreciate their quick and knowledgeable responses whenever we had a question. Thanks!!Hannah T.
Jason and his team are amazing. We inquired about refinancing our home two years ago and at that time Jason was honest with us about what we needed to do and why we should wait in order to receive the best rate and deal. We waited a year and spoke with Jason once again to start the process. His team walked me through the process and it was so much easier than I had anticipated. They were friendly, communicative, and a pleasure to work with. I would recommend this amazing group to all my family and friends.Vanessa M.
Jason and his team helped us get into our primary residence 6 years ago. Since then we have acquired investment properties and most recently needed to refinance our house. While our file isn’t easy, his team was knowledgeable and helped made the process a breeze. When you are looking for a no hassle lender at a fair price the Gill group is your answer.Tyler C.
Jason’s team is amazing! They had a lot of knowledge regarding the loan process and what we needed to do to get the best interest and approved on time. They made the process very easy and with no stress. Not only that, they were able to get us approved and closed quick! I would definitely recommend them!Sherry L.
Jason and his team were very thorough and professional. We were ahead of schedule every step of the way, from being quickly and conveniently pre-approved all the way through closing out the loan- even having paperwork prepared for a Saturday. My wife and I really appreciated their efforts, helping us complete the purchase of our dreams!Tyler B.
We were buying and selling our home at the same time which made it for a very hectic experience. Working with Jason and his team was the one aspect of this whole process that was calming and smooth. He was always available to answer all my questions and was very thorough in providing me all the different options available to me. He was quick to answer my calls and emails. I would definitely recommend Jason and his group to all my friends and family.Perla S.