FHA Loans
Jay Dacey Mortgage Team helps homeowners secure FHA loans. FHA loans originate from the Federal Housing Administration and are insured by HUD (US Dept. of Housing) so that lenders can offer more affordable mortgage rates. FHA loans require lower down payments and closing costs. FHA loans allow you to purchase a home with a 3.5% down payment, or refinance a home up to 96.5% of the home's value. FHA loans are easier to qualify for, have lower credit requirements, and offer several homeowners an easy way to secure financing.
FHA loans offer options to those who've undergone bankruptcy or foreclosure. They're available to first time homebuyers, refinancers and anyone who's purchasing property and doesn't already have an existing FHA loan. The guidelines for debt ratio and job qualifications are more lenient than a conventional loan. Your monthly payment will include private mortgage insurance. Unlike conventional loans, this is a part of your payment for the life of the loan; it does not fall off when you reach an 80% loan-to-value ratio.
Below are some requirements for FHA loans:
- Need two years of consistent employment and income
- Credit guidelines vary; please ask Jay Dacey Mortgage Team for details.
- Bankruptcies must be 2 years old; good credit since the bankruptcy
- Foreclosures must be 3 years old; good credit since the foreclosure.
- Mortgage payment of your new home must be around 30% of your gross income.
To see if you pre-qualify for a FHA home loan, contact Jay Dacey NMLS #375033 today at 651-315-7681 or complete our online application.
Be prepared to provide documentation including:
- proof of identity (such as driver’s license)
- W2s for the past 2 years
- Paystubs
- For self-employed borrowers, see our self-employment section
Purchase
FHA loans require a minimum of 3.5% down payment. The entirety of these funds can be gifted to you.
Refinance
You can refinance from an FHA loan into another FHA loan, or from a conventional loan into an FHA loan. You can refinance up to 96.5% of the home’s value. Private mortgage insurance is a part of your mortgage payment over the life of the loan.