FHA Mortgage Guidelines

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What is an FHA Mortgage Loan?

An FHA loan is a mortgage loan that is insured by the Federal Housing Administration (FHA). An FHA loan is typically one of the easiest types of mortgage loans to qualify for because you can have less-than-perfect credit and the required down payment (3.5 percent) is lower than conventional loans.

FHA Mortgage Loan Qualifications

The FHA imposes certain loan guidelines that FHA-approved lenders and potential borrowers must abide by. In order for an FHA-approved lender, such as Inlanta Mortgage, to approve a borrower for an FHA mortgage loan the borrower must meet the following criteria:

  • Must have steady employment history or a minimum of two years working for the same employer
  • Must have valid social security number
  • Must be using purchased property as primary residence
  • The property mush be appraised by an FHA-approved appraiser

Other qualifying criteria will apply. Contact me for more information, or apply now.

FHA Mortgage Insurance – MIP & UFMIP

Since the guidelines for FHA mortgage loans are less strict than conventional mortgage loans and the loan offers a lower down payment option, there is a higher risk of associated with FHA loans. As a result of this increased risk, the FHA requires borrowers to pay mortgage insurance premiums. There are two kinds of mortgage insurance premiums associated with FHA mortgage loans. The first premium, upfront mortgage insurance premium (UFMIP) is one that is paid upfront. In actuality, the UFMIP can be paid in full upfront or financed into the mortgage. The second is an annual insurance premium that is billed monthly. The monthly mortgage insurance premium that will be due each month through the life of the loan. For more information on the FHA mortgage insurance premium collection process, visit Hud.gov.

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