The Federal Housing Administration (FHA) was created to protect lenders and improve the housing market. By insuring home loans that are made by approved lenders, both lenders and buyers benefit from the FHA loan program. Henderson mortgage companies are protected from borrower default while homebuyers are able to receive great rates with less than perfect credit. The FHA offers loan options for purchases, refinances, special renovation projects, and even reverse mortgages. All American Home Mortgage, your premiere Henderson mortgage lender, offers the best rates available on FHA loans in Nevada.
FHA loans have become one of the preferred home loans among first-time homebuyers given their low down payment and credit score requirements. A first-time homebuyer may be able to qualify for an FHA loan with a credit score of 580 and a down payment of only 3.5% of the purchase price. If a borrower does not have the cash on hand to meet the minimum requirement, family members can even offer the down payment as a gift.
Henderson FHA Loan Requirements
- Credit Score – A credit score of at least 580 is required. Borrowers with scores between 500 and 579 may still be able to qualify but a larger down payment may be needed.
- Debt-to-Income Requirements – A debt-to-income (DTI) ratio of 43% or less is the standard requirement. In special cases, a DTI ratio of up to 50% may be approved.
- Down Payment – 3.5% of the purchase price is the minimum down payment allowed with an FHA loan. A higher down payment may be needed depending on a borrower’s credit score.
- Property Requirements – Properties must meet certain safety, security, and soundness (structural integrity) requirements to be eligible for the program.
Maximum loan limits vary by county and can range from $271,000 up to $636,500 in high-cost areas.
Mortgage insurance makes the FHA loan program and the benefits that it provides possible. Each FHA loan requires two different mortgage insurance premiums (MIP). At the time of purchase, an up-front premium of 1.75% of the purchase price is added to your mortgage balance by the FHA. The second premium is paid as part of your monthly mortgage payment and will be between .45% and 1.05% of your annual mortgage balance. The specific percentage for each loan will be based on factors including the total loan amount, your loan-to-value (LTV) ratio, and the length of the mortgage.
A number of loan options are available through the FHA designed to meet a wide range of borrower needs. In addition to home purchase loans, streamline refinance and cash-out refinance options are available for current FHA loan holders. Buyers interested in a rehabilitation project can use an FHA 203k loan to combine the purchase of a home and the cost of renovations and repairs into a single mortgage.
Whether you are purchasing your first home in Henderson, or are a current homeowner interested in refinancing your current FHA loan, at All American Home Mortgage, we can assist you with all of your FHA loan needs. Contact us today for more information on Henderson FHA loans or to begin the pre-qualification process!