What is an FHA mortgage?
FHA loans are provided by private lenders like Drummond, but regulated and insured by the Federal Housing Administration (FHA). They come with certain restrictions such as maximum loan amounts and are easier to qualify for with a lower credit score.
Get pre-qualified for an FHA home loan
Our experience is that pre-qualifying for a mortgage is of great benefit. Not only will it speed up your process, but it will also help you understand in advance how much of a house you can afford. And, you can demonstrate confidence in your ability to obtain financing. Both of these aspects can greatly assist in your negotiation process.
Need Help Deciding?
If it’s your first time applying for a mortgage, or you’re unsure which option is right for you, we can help. The key to making a smart financial decision begins with understanding the benefits of each product and determining which one meets your goals. Give us a call or visit your nearest Drummond branch.
Features and Benefits
- For primary residence only
- Down payments as low as 3.5%
- Fast loan approval
- Fixed rate
- Gift funds allowed for down payments
- Seller concessions up to 6% toward closing costs
- Streamlined refinance options
- Maximum loan amounts vary by county
Other Drummond Home Mortgage Solutions:
- Conventional Mortgages: Can be used for a primary residence, second home, investment property, or construction-to-permanent loans.
- VA Mortgage: Up to 100% financing for eligible servicemembers and veterans.
- USDA Mortgage: 30-year fixed rate mortgage for a primary residence. Income and geographic requirements apply.
Frequently Asked Questions:
What is the difference between FHA and Conventional Mortgages?
FHA loans are partially guaranteed by the federal government, which makes it less risky for lenders to approve home loans for people with lower credit scores and/or lower down payments. FHA loans also have a mandatory mortgage insurance premium, so if you can qualify for a conventional mortgage, it’s probably a better option.
What do I need to apply for a mortgage?
To start applying, we recommend you have the following information on hand:
- A separate email address for each person that will be on the loan
- Details(bank statements) about how much money is in each account you would like us to consider for your approval
- Your income and employer information
- Your social security number
- A valid drivers license
Who qualifies for an FHA loan?
While FHA loans are popular with first-time buyers, you don’t have to be one to qualify. As long as you and your desired home meet FHA regulations, you can get approved for an FHA mortgage.
What is the minimum credit score for an FHA loan?
FHA loan applicants need to have a minimum FICO score of 580 to qualify for a low down payment. If your credit score is lower than that, you may still be able to qualify–contact our mortgage lenders to discuss your specific situation.
What is the best place to get an FHA loan from?
At Drummond Community Bank, we are proud to bring you the best possible mortgage loan terms and features such as fast loan approval, flexible loan terms, and competitive rates.
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