FHA Loans
Jay Dacey Mortgage Team helps homeowners secure FHA loans. Insured by HUD to offer more affordable mortgage rates, lower down payments, and flexible qualifying guidelines for buyers and refinancers across Minnesota, Wisconsin, North Dakota, and Florida.
Introduction to FHA Loans
How FHA financing works in plain English.
What Is an FHA Loan?
Jay Dacey Mortgage Team helps homeowners secure FHA loans. FHA loans originate from the Federal Housing Administration and are insured by HUD (U.S. Department of Housing and Urban Development) 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.
Mortgage Insurance on FHA Loans
Your monthly payment will include private mortgage insurance (MIP). 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.
FHA Loan Requirements
Below are general requirements for FHA loans. Because each situation is unique, make sure to contact our team to review your qualifications:
- Consistent Employment: Need two years of consistent employment and income.
- Flexible Credit: Credit guidelines vary; please ask Jay Dacey Mortgage Team for details.
- Past Bankruptcy: Bankruptcies must be 2 years old, with good credit re-established since the bankruptcy.
- Past Foreclosure: Foreclosures must be 3 years old, with good credit re-established since the foreclosure.
- Debt-to-Income: Mortgage payment of your new home must be around 30% of your gross income.
See If You Pre-Qualify for an FHA Loan
Contact Jay Dacey, NMLS #375033 today at 651-315-7681 or complete our online application.
Purchase
FHA purchase loans make homeownership accessible with smaller cash reserves.
- 3.5% Down Payment: FHA loans require a minimum of 3.5% down payment.
- 100% Gift Funds Allowed: The entirety of your down payment funds can be gifted to you by family or eligible donors.
- Lenient Qualifying: More forgiving debt ratio and credit guidelines than conventional loans.
- Closing Cost Assistance: Seller can contribute up to 6% toward closing costs.
Refinance
Refinance to lower your monthly rate, switch programs, or access home equity.
- Flexible Options: You can refinance from an FHA loan into another FHA loan, or from a conventional loan into an FHA loan.
- Up to 96.5% LTV: You can refinance up to 96.5% of the home's appraised value.
- FHA Streamline Refinance: Existing FHA borrowers can often refinance with reduced paperwork and no appraisal.
- Mortgage Insurance: Private mortgage insurance is a part of your mortgage payment over the life of the loan.
What Documents Will I Need?
Be prepared to provide documentation including:
Frequently Asked Questions
Common questions about FHA loans and qualification.
Ready to Pre-Qualify for an FHA Loan?
To see if you pre-qualify for an FHA home loan, contact Jay Dacey, NMLS #375033 today at 651-315-7681 or complete our online application.
Direct access to Jay Dacey (NMLS #375033) • Jay Dacey Mortgage Team, Inc. (NMLS #1812066)
What Our Clients Say
Real feedback from Minnesota, Wisconsin, North Dakota, and Florida homebuyers and refinancers.
"Amazingly Helpful"
I have yet to actually buy a house myself, mostly due to my own questions on what I want, but Jay came highly recommended from a trusted co-worker. He has helped me through multiple choices, questions, potential properties, and helped my sister with her mortgage too. I would highly recommend Jay and his team!
"Seamless Home Buying Experience"
Jay and Madeline were incredible to work with from start to finish. As first-time homebuyers, we had endless questions and they walked us through every option patiently. They found us a rate we couldn't get anywhere else and closed right on schedule!
"Engaged and Responsive!"
THANK YOU to Molly and the Jay Dacey Team! During a refinance of my mortgage loan for lowering my interest rate, lowering my mortgage payment, and squaring away my escrow account! Engaged and responsive! Handled a difficult purchase previously and executed flawlessly.
Read All 200+ Verified Client Reviews
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