Buy a Home
- Competitive FHA interest rates
- Low minimum down payments
- Minimum credit score often 550
- Mortgage insurance premiums required
- All homebuyers are eligible
Lower Your Payment
- Lower rates and payments with a streamlined process
- No income verification or credit check
- No home appraisal
- Only FHA homeowners are eligible
Get Cash from Equity
- Get cash from your home's value
- Minimum credit score often 550
- Pay for debt consolidation, home upgrades, and education
- Only FHA homeowners are eligible
Save with an Adjustable Rate
You may qualify for an adjustable-rate FHA loan that has a lower starting rate compared to a 30-year, fixed-rate loan. Ask us what interest rate we may be able to offer you.
Frequently Asked Questions About FHA Loans
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FHA loans can make buying and refinancing homes more affordable for people with less income and lower credit scores. You may be able to buy a home with an FHA loan with a down payment as low as 3.5% of the purchase price. You can often qualify to buy or refinance a home with a credit score as low as 550 through Freedom Mortgage.
FHA loans might have lower rates compared to Conventional loans because they are guaranteed by the Federal Housing Administration (FHA). You can also qualify to get cash from the value of your home’s equity with an FHA Cash Out Refinance.
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All homebuyers can qualify for an FHA loan. You’ll need to demonstrate you have enough income to make the monthly payments. You’ll also need to meet our 550 minimum credit score requirement and have a debt-to-income ratio (DTI) typically no higher than 43%.
You’ll need to make a down payment, pay an upfront mortgage insurance premium, and pay closing costs to buy a home with an FHA loan. You must also meet the property requirements for an FHA-approved home.
FHA homeowners can often lower their rate and payment with less paperwork and a faster closing using the FHA streamline refinance program. Qualifying for these refinances can be simpler if you have a history of making your monthly loan payments on time.
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Yes, you’ll need to make a down payment to buy a home with an FHA loan. You may be able to make a down payment as low as 3.5% of the purchase price when you have a higher credit score. When you have a lower credit score, you may be required to make a 10% down payment.
Making a larger down payment than the required FHA minimum can help you save money on interest over the life of the loan, because you are borrowing less money to buy a house. Larger down payments might also help you save money on the monthly mortgage insurance premiums (MIP) required for FHA loans.
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Freedom Mortgage can make buying or refinancing a home with a FHA loan simpler. To apply for a FHA loan with us, call 877-220-5533 and speak with an experienced Loan Advisor. You can also get started online by filling out our web form.
Compare Different Types of Home Loans
| Loan | Eligibility | Minimum Credit Score | Minimum Down Payment | Upfront Fees/ Insurance | Monthly Fees/ Insurance | Streamline Refinancing |
|---|---|---|---|---|---|---|
| Conventional | All homebuyers and owners | Often 620 | Often 5% | No | No with at least 20% equity | No |
| FHA | All homebuyers and owners | Often 550 | As low as 3.5% | Yes | Yes | Yes |
| VA | Veterans, military personnel, surviving spouses only | Often 550 | Often 0% | Yes | No | Yes |
| USDA | Rural and some suburban homebuyers and owners only | Often 620 | Often 0% | Yes | Yes | Yes |
