FHA Loans

Loans insured by the Federal Housing Administration (FHA) are often the best option for people who need a little extra flexibility when qualifying for a new home mortgage. This can be borrowers with imperfect credit, low money down, or who need to qualify for a slightly larger loan amount.

FHA  loans can be used for purchasing a home or refinancing an existing mortgage. You do NOT need to be a first time buyer – anyone who does not currently own a home financed with an FHA mortgage, who is buying a new home to use as their Primary Residence is eligible.

Existing FHA loans may be eligible for a streamline refinance as well. This is a reduced paperwork refi that usually does not require an appraisal. or income documentation, and may be an ideal solution to lower the interest rate and monthly payment on a current FHA loan.

FHA loans can also be used to finance home improvements. By financing the cost of the work to be done, home buyers and owners can make the repairs or upgrades they want and still keep the low down payment and flexible qualifying terms of an FHA-insured loan.

Some highlights:

  • 3.5% down payment for credit scores as low as 580, or down to 500 with 10% down
  • Shorter time requirements after a bankruptcy or foreclosure than conventional lending – as little as 1 year
  • A minimum of 3.5% down for purchases – money can be a gift.
  • No reserves required for one or two family homes

In most cases, FHA loan approval begins with an automated underwriting system know as the TOTAL Scorecard. The automated system reviews all aspects of the FHA loan application – credit history and current debt, income, employment history and more. If the universal, automated underwriting system approves the file – even with lower credit scores or higher debt to income ratios – many lenders will approve the loan without further limitations.

There are some minimum property requirements for FHA loans – there can be no peeling paint in the interior or exterior of the property, all utilities and systems must be functional, there can be no health or safety hazards evident etc. A good home inspection is your best defense against possible property issues.

There are maximum loan limits set by county. The maximum loan amount for a single family home most New Hampshire counties is $270,050, but is as high as $523,250 in Strafford and Rockingham counties. There are no income limits on FHA loans.

The mortgage loan originators at Pinnacle Mortgage Corp.  have 30 years of experience with crafting FHA loans. We work with select lending partners to make sure that we have the right FHA solution for you, whether you need additional credit flexibility, a fantastic interest rate, or to finance money for renovation. We have local originators in Concord, Manchester, Goffstown and the Lakes Region, but we’re always happy to work with FHA borrowers anywhere in New Hampshire, Maine, Massachusetts and Connecticut.