FHA Loans
Why Centris
Competitive Rates
Experience long-term savings with competitive interest rates.
Simple to Apply
Support from Our Team
Three Simple Steps
- Apply online or in person. Applying for your FHA loan takes just a few minutes.
- Get approved. Once you qualify, we’ll discuss the details of the loan including interest rate.
- Receive your mortgage loan. You’re set to buy your home.
Our Team is Here for You
At Centris, our team takes great pride in providing the best customer service. From helping you identify if a FHA loan is the right mortgage option for you to working with you through the qualification process, we’re here every step of the way.
About FHA Loans
What Is an FHA Loan?
FHA loans are mortgages insured by the Federal Housing Administration that must be issued by an FHA-approved lender. FHA loans are designed to make mortgages more accessible to first-time home buyers and people looking to put down a lower down payment or who have lower credit scores.
Benefits of FHA Loans
The benefits of FHA loans make buying a home more accessible for first-time home buyers, those will lower credit scores, or those simply looking to keep more money in their pocket.
Low Down Payment
Down payments can be as low as 3.5% for those with qualifying credit scores.
Lower Credit Score Requirements
FHA loans have less strict credit score requirements than other loans.
Higher DTI Allowed
FHA loans allow higher debt-to-income (DTI) ratios than other mortgage programs.
100% Gifted Down Payments Allowed
FHA loans allow 100% of your down payment to be gifted by relatives, government programs, and more.
FHA Loan Requirements
- A minimum credit score of 500 and a credit score of 580 to qualify for 3.5% down payment.
- Debt-to-income ratio must be less than 43%.
- The home being purchased has to be the borrower’s primary residence (can’t be a rental property or second home).
- Paying a mortgage insurance premium is required.
- The borrower must have proof of employment and have steady income.
FHA Loans vs. Conventional Loans
FHA and conventional, or conforming, loans have their own unique advantages. Choosing the right mortgage for you comes down to your financial situation.
FHA Loans
The pros of FHA loans make them a very popular mortgage option. FHA loans are easier to qualify for due to the lower minimum down payments, lower credit score requirements, and higher debt-to-income ratio allowed.
The drawback is that FHA loans require a mortgage insurance premium (MIP) for the life of your loan unless you make a 10% down payment where the MIP is removed after 11 years. You’ll also pay an upfront mortgage premium when you close on the home.
Conventional Loans
While conventional loans do require a higher down payment and a better credit score, they have their own advantages. A big one is that private mortgage insurance (PMI) can be completely avoided with a large enough down payment, can be paid off in a lump sum, or will drop off after you’ve paid a certain percentage of the mortgage.
The obvious downside is that your financials have to be in better shape. Especially for first-time home buyers without any equity from their last home, making a down payment for a conventional loan can be challenging.
FHA Rates
FHA Loan FAQs
What’s the Minimum Credit Score Required for an FHA loan?
The absolute minimum is a credit score of 500, and the minimum to be able to make a 3.5% down payment is 580. Credit scores between 500-579 are required to make a 10% down payment.
What Are the FHA Loan Limits Right Now?
FHA loan limits can vary from county to county and will change over time. Talk with our team or visit the Department of Housing and Urban Development (HUD) website to learn more.
Do Credit Unions Give FHA Loans?
Yes they do. You can apply for one at Centris Federal Credit Union!
Do FHA Loans Require Private Mortgage Insurance (PMI)?
They don’t. PMI is part of privately insured loans, not federally insured ones. Instead, FHA loans require an upfront mortgage insurance premium that’s paid at closing and an ongoing mortgage insurance premium throughout the life of the loan.
Start Your Application Now
Apply online or contact our team to get your application started.