FHA Loan

Your Dream Home, Now Within Reach

FHA loans are government-backed mortgages that offer potential homeowners an accessible path to homeownership. Known for their less stringent credit requirements and lower down payments, FHA loans are an excellent solution for first-time homebuyers and those with less-than-perfect credit. At Federal Hill Mortgage, we specialize in crafting FHA loan solutions that support your journey to owning a home, providing you with the guidance and expertise needed every step of the way.

Considering a FHA Loan?
Federal Hill Mortgage is Your Trusted Partner.

Access the Best Rates

When you choose us, we use our extensive network of lending partners to guarantee you the best rates available. We streamline the process, ensuring that you receive the most advantageous rates and save you both time and money on your home purchase.

Same-Day Pre-Approvals

Step into the fast lane with our same-day pre-approvals. Many of our clients find themselves pre-approved in the same day, setting the stage for a smooth home-buying experience.

24/7 Support Tailored for You

We value your time and know that questions can arise at any moment. That's why our phone lines are open around the clock, ensuring you always have a dedicated team ready to assist with any inquiries or concerns.

We shop the best lenders and rates, so you don't have to.

Leveraging our expansive network of top lenders, we eliminate the need for you to shop around. Our rates are not only competitive but come with the trust and expertise of a seasoned team with over 18 years in the industry. Your dream home is just a decision away.

Understanding the Benefits

FHA Loan Features:

  • Lower Down Payments

    Enjoy down payment requirements as low as 3.5%, making homeownership more attainable.

  • Flexible Credit Requirements

    FHA loans are forgiving on credit, offering opportunities to those with recent credit challenges.

  • Reduced Interest Rates

    FHA loans often come with competitive interest rates, reducing your long-term financial commitment.

  • Gift Funds Acceptance

    Use gift funds for your down payment and closing costs, providing flexibility in how you finance your home purchase.

  • State and Local Down Payment Assistance

    Pair your FHA loan with various down payment assistance programs available in many states and localities.

  • Generous Lending Limits

    Benefit from lending limits that make sense for your budget and the real estate market in your area.

  • Higher Debt-to-Income Ratios Allowed

    Qualify with higher debt-to-income ratios compared to conventional loans.

  • Streamlined Refinance Programs

    Take advantage of FHA streamline refinance options for an easy and efficient way to reduce your interest rate and monthly payment.

  • Protection from Early Payoff Penalties

    No penalties for paying off your mortgage early, giving you financial freedom.

  • Assumable Loans

    FHA loans can be assumed by qualified buyers when you sell your home, potentially making it more attractive to buyers.

  • FHA 203(k) Improvement Loan Option

    Finance both the purchase of your home and the cost of its improvements with a single loan.

  • Multi-Unit Property Financing

    Use an FHA loan to purchase a property with up to four units, provided you occupy one of them.

Wondering If a FHA Loan Fits Your Needs?

It's natural to have questions, and that's why we're here. At Federal Hill Mortgage, we believe in making the dream of homeownership a reality for everyone. Our FHA loan options are designed to open doors for you, providing a supportive path to owning your home. Let's explore how an FHA loan can work for you.

Chat with a Loan Expert

Common questions about FHA Loans

  • An FHA loan is a mortgage insured by the Federal Housing Administration, designed for lower-income borrowers or those with less-than-perfect credit scores. It's particularly popular among first-time homebuyers due to its more lenient lending standards.

  • Requirements include a minimum credit score of 580 for the 3.5% down payment, steady employment history, and a debt-to-income ratio within acceptable limits. Borrowers with credit scores between 500 and 579 may still qualify but might need to make a down payment of at least 10%.

  • FHA loans can be used for single-family homes, FHA-approved condos, and multi-unit properties, as long as the borrower intends to make the property their primary residence. Certain restrictions may apply to the condition and value of the property.

  • FHA loans are backed by the government and typically have lower credit score and down payment requirements than conventional loans. They also require paying for mortgage insurance, which includes an upfront premium and an annual premium that lasts for the life of the loan.

  • The benefits include lower down payment requirements, more lenient credit score criteria, and the ability to use gift funds for down payments and closing costs. FHA loans are also assumable, which means they can be transferred to a new buyer if the home is sold.

  • Yes, FHA loan limits vary by county and are updated annually. They are based on median home prices and can differ depending on whether the area is considered low-cost or high-cost.

  • Interest rates for FHA loans are competitive and may be lower than conventional loans for borrowers with lower credit scores. Rates can vary based on market conditions, the borrower's creditworthiness, and the lender.

  • The FHA allows some closing costs to be rolled into the loan, but the down payment must be paid upfront. It's also possible to negotiate for the seller to pay some of the closing costs.

  • Yes, borrowers must pay a mortgage insurance premium (MIP) for an FHA loan. This includes an upfront premium, which is typically financed into the loan, and an annual premium paid monthly.

  • Yes, FHA loans can be refinanced, and the FHA offers a streamlined refinance program for borrowers who want to lower their interest rate and monthly payment without an extensive qualification process.

  • The FHA 203(k) loan is a type of mortgage that allows you to buy a home and include the cost of repairs and improvements in the loan amount. This can be a great option for buying a fixer-upper or making significant renovations to your current home.

  • Yes, if you're buying a multi-unit property with an FHA loan, you must plan to live in one of the units as your primary residence. The other units can be rented out, which may help you qualify for the loan by including potential rental income in your application.