An FHA loan refers to a mortgage issued by a lender who has been approved by the Federal Housing Administration (FHA). This type of mortgage must be insured by the FHA. The FHA loan is designed for borrowers who earn a low to moderate income. FHA loans demand lower minimum credit scores and down payments in comparison to traditional loans.
It is possible to borrow 96.5 percent of the value of a house with an FHA loan. This means that the minimum down payment is just 3.5 percent. The minimum credit score needed to qualify for an FHA loan is 580.
If your credit score is between 500 and 579, you will need to make a 10 percent down payment to get an FHA loan. If you’re interested in getting an FHA loan, here is a list of approved FHA mortgage lenders to consider.
Mortgage Investors Group is one of the best choices if you're looking for an FHA-approved mortgage lender. MIG has a proven track record and is considered a long-time industry leader.
This FHA mortgage lender is ideal for borrowers with bad credit and first-time home buyers. Some advantages of Vylla include a low minimum credit score, free rate locks, and online application, document upload, and loan tracking. One of the main cons of Vylla is no online pre-approval.
If you value online convenience, Quicken Loans is a good choice in terms of FHA mortgage lenders. Quicken Loans is the biggest FHA lender in the United States and is considered a key leader in terms of mortgage-technology. You can fill out an application for a mortgage loan completely online with Quicken Loans.
However, there are also mortgage advisors you can speak to if you need help. For about 60 percent of working Americans, Quicken Loans is able to verify income and employment. Quicken Loans offers FHA-backed loans that require a minimum down payment of 3 percent.
One disadvantage of Quicken Loans is that it doesn’t consider alternative data for credit. Quicken Loans only takes a look at the debt-to-income ratios and credit scores, which is what most mortgage lenders have done.
Rocket Mortgage is ideal for anyone who would like to use a smartphone app for support, service, and time savings. The home loan experience with Rocket Mortgage is fully digital with many mortgage products.
This FHA mortgage lender is ideal for self-service users who would rather avoid talking to an advisor when applying for a home loan. Rocket Mortgage can tell you the loan amount that you qualify for in just minutes.
Rocket Mortgage is able to retrieve assets and document to save you time. You can provide Rocket Mortgage with authorization to access asset statements from 98 percent of financial institutions in the United States.
New American Funding
New American Funding is ideal for refinancers and home buyers who desire an FHA mortgage and need to use nontraditional credit criteria for evaluation.
Prime Lending is ideal for borrowers who need help with the costs for closing. Prime Lending has a proprietary program that helps low- and moderate-income borrowers with as much as $2,000 in closing cost credits. The name of this proprietary program is Neighborhood Edge.
Looking for an FHA-approved mortgage lender does not have to be difficult. If you're in the market for an FHA loan for a mortgage, consider the lenders listed above.