Chris Lorenzen | Fitchburg Real Estate, Leominster Real Estate, Gardner Real Estate


FHA loans have long been a valuable resource for Americans who want to fulfill their goal of homeownership but who don’t have the benefit of a lengthy credit history and equity.

If you’re hoping to buy a home in the near future but want to explore all of your options in terms of financing, this article is for you.

Today we’re going to talk about FHA loans and how to know if you qualify for one.

What are FHA loans?

FHA loans are issued by private mortgage lenders across the country, just like regular mortgages. The difference, however, is that an FHA loan is “guaranteed” by the federal government.

Lenders decide your borrowing eligibility, and how much you can borrow, by determining risk. If you don’t have a sizable down payment (oftentimes 20% or more) and you have a low credit score, most mortgage lenders will see you as a risky person to lend to.

When you get an FHA loan, however, the federal government assumes some of that risk, allowing you to secure the loan anyway.

This means you can buy a home with a low credit score, a smaller than usual down payment, and save on some closing costs.

How do I qualify for an FHA Loan?

To find out if you qualify for an FHA loan, you’ll head to the same place as a traditional mortgage--a mortgage lender. Oftentimes, you can simply call or visit the website of lenders to get the process started.

As with all things, it’s a good idea to shop around for a mortgage lender. Their offerings will be largely similar, but there might be minor differences that make one better than another for your particular circumstances.

Down payment requirements

To secure an FHA loan, you will need to make a down payment of at least 3.5%. However, this low down payment comes with a price. You’ll typically be required to pay private mortgage insurance (PMI) fees on top of your accruing interest for your loan.

Credit score requirements

While you can often secure a mortgage with a lower credit score through an FHA loan, there are still some requirements. To secure a loan with the lowest possible down payment (3.5%), you’ll need a credit score of 580 or above.

Previous homeowners and FHA loans

A common misconception about FHA loans is that they are only for first-time homeowners. However, you can still qualify for an FHA loan if you’ve owned a home before as long as it has been three years since you’ve had a foreclosure or two years since filing for bankruptcy.

If you meet these three conditions, you should be able to secure an FHA loan through a traditional mortgage lender.



149 Gardner Road, Hubbardston, MA 01452

Single-Family

$345,000
Price

6
Rooms
3
Beds
2/1
Full/Half Baths
Custom Contemporary Cape in EXCELLENT condition. Situated on 3.3 acres surrounded by nature, mature landscaping & flower gardens. This home offers quality construction throughout w/a pleasing floor plan. Inviting, bright, two story foyer w/palladium window & double closets. Comfortable living room w/wood burning fireplace & mounted smart TV to convey. Oak cabinet kitchen w/center island, stainless appliances, large dining area & slider to a private deck over looking the back yard. First floor master bedroom w/large walk in closet & master bath w/linen closet . Half bath w/laundry & storage completes the first level. Head up stairs for a nice surprise! Large loft family room w/projector for movie night! Two additional bedrooms w/ample closet space & full hall bath w/linen closet. All bathrooms, foyer & kitchen have tile flooring. Need more space? Walk out basement w/slider to patio is perfect for finishing. Fenced in back yard. 10x16 Reeds Ferry shed w/loft. You will LOVE this home!
Open House
Sunday
November 18 at 11:00 AM to 1:00 PM
Custom Contemporary Cape in excellent condition. Great home indoors and out. Join the hostesses REALTORs Brooke Ratcliffe and Chrissie Prescott as well as Katie Weldon of Village Mortgage to answer all your financing questions.
Cannot make the Open Houses?
Location: 149 Gardner Road, Hubbardston, MA 01452    Get Directions

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149 Gardner Road, Hubbardston, MA 01452

Single-Family

$345,000
Price

6
Rooms
3
Beds
2/1
Full/Half Baths
Custom Contemporary Cape in EXCELLENT condition. Situated on 3.3 acres surrounded by nature, mature landscaping & flower gardens. This home offers quality construction throughout w/a pleasing floor plan. Inviting, bright, two story foyer w/palladium window & double closets. Comfortable living room w/wood burning fireplace & mounted smart TV to convey. Oak cabinet kitchen w/center island, stainless appliances, large dining area & slider to a private deck over looking the back yard. First floor master bedroom w/large walk in closet & master bath w/linen closet . Half bath w/laundry & storage completes the first level. Head up stairs for a nice surprise! Large loft family room w/projector for movie night! Two additional bedrooms w/ample closet space & full hall bath w/linen closet. All bathrooms, foyer & kitchen have tile flooring. Need more space? Walk out basement w/slider to patio is perfect for finishing. Fenced in back yard. 10x16 Reeds Ferry shed w/loft. You will LOVE this home!
Open House
No scheduled Open Houses

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440 Erickson Road, Ashby, MA 01431

Single-Family

$625,000
Price

11
Rooms
4
Beds
2/1
Full/Half Baths
Nature lovers take notice! This spectacular property is sure to please the outdoor enthusiast! Meander down the 700ft driveway & you'll find complete privacy, peace & tranquility amongst 15+ acres w/fruit trees, trails & more! Are you a horse lover, hobbyist or collector? You'll love the separate 25x34 two bay garage w/finished room above w/pellet stove. Imagine summer fun around the 20x40 in ground pool. Hike/ride the trails in the fall & harvest apples. Enjoy morning coffee on the front porch or watch deer visit while dining on the back deck. Dining room, granite kitchen & living room w/fireplace share an open floor plan & is perfect for entertaining. Inviting two story foyer, formal living & dining room, first floor laundry & home office completes the first floor. The second level offers a master suite w/his & her walk in closets, master bath w/jetted tub & sitting room. Plus three additional bedrooms & full bath. Finished basement, A/C, cut expenses w/solar panels & so much more!
Open House
No scheduled Open Houses

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Nature lovers take notice! This spectacular property is sure to please the outdoor enthusiast! Meander down the 700ft driveway & you'll find complete privacy, peace & tranquility amongst 15+ acres w/fruit trees, trails & more! Are you a horse lover, hobbyist or collector? You'll love the separate 25x34 two bay garage w/finished room above w/pellet stove. Imagine summer fun around the 20x40 in ground pool. Hike/ride the trails in the fall & harvest apples. Enjoy morning coffee on the front porch or watch deer visit while dining on the back deck. Dining room, granite kitchen & living room w/fireplace share an open floor plan & is perfect for entertaining. Inviting two story foyer, formal living & dining room, first floor laundry & home office completes the first floor. The second level offers a master suite w/his & her walk in closets, master bath w/jetted tub & sitting room. Plus three additional bedrooms & full bath. Finished basement, A/C, cut expenses w/solar panels & so much more!

More Info on this Property | New Listing Alerts



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