Loan
FHA Loans
Federal Housing Administrative (FHA) mortgages are government-backed loans developed to provide homebuyers an alternative to conventional home financing.
Benefits of an FHA loan
- The lowest down payment with an FHA mortgage is 3.5%
- Borrowers with a credit score as low as 580 can still qualify for funding
- Fixed rates and down payment assistance are available
- The FHA lets the borrower submit proof of compensating factors—low debt, residual income, increased earning potential—to prove their creditworthiness
- There are options to purchase, build, or renovate with an FHA loan
What is an FHA loan?
A Federal Housing Administration (FHA) loan is a home mortgage that the government insures. Only a bank or lender with agency approval can issue this type of loan. They typically require a lower minimum down payment, and applicants can have lower credit scores than most conventional loans. As a result, they’re popular with first-time homebuyers and can help low- to moderate-income families attain homeownership.
These loans are especially popular with first-time buyers with limited savings or complex credit situations. That’s because the government backing allows many lenders to offer lower average rates than conventional mortgages. It’s one of the most accessible loans, especially if you have less than perfect credit.
FHA Loans
Federal Housing Administrative (FHA) mortgages are government-backed loans developed to provide homebuyers an alternative to conventional home financing.
What is an FHA loan?
A Federal Housing Administration (FHA) loan is a home mortgage that the government insures. Only a bank or lender with agency approval can issue this type of loan. They typically require a lower minimum down payment, and applicants can have lower credit scores than most conventional loans. As a result, they’re popular with first-time homebuyers and can help low- to moderate-income families attain homeownership.
These loans are especially popular with first-time buyers with limited savings or complex credit situations. That’s because the government backing allows many lenders to offer lower average rates than conventional mortgages. It’s one of the most accessible loans, especially if you have less than perfect credit.
Benefits of an FHA loan
- The lowest down payment with an FHA mortgage is 3.5%
- Borrowers with a credit score as low as 580 can still qualify for funding
- Fixed rates and down payment assistance are available
- The FHA lets the borrower submit proof of compensating factors—low debt, residual income, increased earning potential—to prove their creditworthiness
- There are options to purchase, build, or renovate with an FHA loan
Is an FHA loan right for you?
We typically recommend FHA loans for first-time homebuyers who require lower down payments or have credit challenges that make it difficult to buy a home. For example, while a “standard” down payment can put you back 10-20% of the home loan, an FHA could require as little as 3.5% down. And you can even use gift funds to cover the total cost of that down payment.
The Oregon FHA loan also has more lenient loan terms around qualifying debt-to-income ratios. Whether you’re a first-time buyer or not, if credit or down payment challenges are keeping you out of the housing game, an FHA loan could be your solution.
Tailored Lending For Your Financial Situation
There’s no singular FHA loan. In fact, there are a variety of loans to provide funding for a variety of unique situations. At Hixon, we take the time to get to know you and your unique situation so we can recommend a loan that will work for you. Ready to get started?
