These loans are government-backed through the Federal Housing Administration (FHA). They also allow for a down payment of 3.5% or even no down payment when utilizing a down payment assistance program. The county loan limits will determine how much you can borrow. You can find your county loan limits by clicking here. FHA loans are an incredible option for borrowers with a lower credit score and low down payment.
FHA loans are backed by the Federal Housing Administration, an agency under the jurisdiction of the Department of Housing and Urban Development. FHA loans are insured by the FHA, which simply means that this organization protects your lender against loss if you default on your loan.
FHA loans are available with a low down payment and lower minimum credit score limits.
The option of a low down payment and more lenient credit requirements can make FHA loans particularly attractive fo first-time home buyers, although you don’t have to be a first-time home buyer in order to qualify. Here are some benefits of FHA loans:
There are certain requirements borrowers must meet to qualify for an FHA loan, including:
There are a few more specific conditions to qualify, including a down payment amount, mortgage insurance, credit score, loan limits and income requirements. Mostly, the FHA requirements to qualify for a mortgage are the same for DACA recipients.