FHA Loans: Typically require a minimum down payment of 3.5%. Conventional Loans: Down payments can vary but generally range from 3% to 20%, depending on the lender’s requirements and the borrower’s creditworthiness.

FHA Loans: Mandate both an upfront mortgage insurance premium and annual mortgage insurance premiums, regardless of the initial down payment amount. Conventional Loans: Require private mortgage insurance (PMI) if the down payment is less than 20% of the property’s value. Borrowers can request cancellation of PMI once they reach 20% equity in the home.

FHA Loans: Have specific property standards that must be met. The property will need to undergo an FHA appraisal. Conventional Loans: Generally have less stringent property standards, and the appraisal process may differ.

FHA Loans: Have set limits that vary by location and are typically lower than those for conventional loans. Conventional Loans: Have higher loan limits, which can be advantageous when purchasing a more expensive property.

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FHA Loans are Available!

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Buy Your Dream Home With Little Money Down With an FHA Loan!

Why an FHA Loan?

Home loans provided by the Federal Housing Administration (FHA) may make it easier for you to buy a home. For an FHA loan a down payment of 3.5% is required. Borrowers who cannot afford a traditional down payment of 20% or are unable to receive approval for private mortgage insurance may consider an FHA loan.

FHA loan program provides an avenue for individuals to achieve homeownership with more lenient eligibility criteria and additional financial flexibility

FHA Loan Qualifier!

Fixed-Rate Mortgage

Adjustable-Rates Mortgage (ARM)

3.5% Down Payments

Jumbo & Super Jumbo Loans

Terms of 15, 20, and 30 years are available for the fixed-rate products

About FHA Home Loans

An FHA loan is a mortgage loan that is insured by the Federal Housing Administration (FHA). Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.

The FHA program was created in response to the rash of foreclosures and defaults that happened in 1930s; to provide mortgage lenders with adequate insurance; and to help stimulate the housing market by making loans accessible and affordable.

We’re here to make the FHA home loan process easier, with tools and knowledge that will help guide you along the way, starting with our FHA Loan Qualifier.

We’ll help you clearly see differences between loan programs, allowing you to choose the right one for you whether you’re a first-time home buyer or a repeat buyer.

The FHA Loan Process

Here’s how our home loan process works:

Complete our simple FHA Loan Qualifier

Receive options based on your unique criteria and scenario

Compare mortgage interest rates and terms

Choose the offer that best fits your needs

What Is The Difference Between FHA and Conventional Loan?

Down Payment:

FHA Loans: Typically require a minimum down payment of 3.5%.
Conventional Loans: Down payments can vary but generally range from 3% to 20%, depending on the lender’s requirements and the borrower’s creditworthiness.

Credit Score Requirements:

FHA Loans: Tend to be more lenient, allowing borrowers with lower credit scores (as low as 500 FICO in some cases) to qualify.
Conventional Loans: Generally require higher credit scores, often starting at 620 or above for favorable terms.

Mortgage Insurance:

FHA Loans: Mandate both an upfront mortgage insurance premium and annual mortgage insurance premiums, regardless of the initial down payment amount.
Conventional Loans: Require private mortgage insurance (PMI) if the down payment is less than 20% of the property’s value. Borrowers can request cancellation of PMI once they reach 20% equity in the home.

Property Standards:

FHA Loans: Have specific property standards that must be met. The property will need to undergo an FHA appraisal.
Conventional Loans: Generally have less stringent property standards, and the appraisal process may differ.

Loan Limits:

FHA Loans: Have set limits that vary by location and are typically lower than those for conventional loans.
Conventional Loans: Have higher loan limits, which can be advantageous when purchasing a more expensive property.

Benefits of an FHA loan

Low Down Payment

Requires as little as 3.5% down.

Favorable Interest Rates

May be more accessible for individuals with lower credit scores.

Flexible Qualification

May accept higher debt-to-income ratios and lower credit scores.

Government Backing

Provides additional security for lenders, potentially resulting in better loan terms for the borrower.

Calculate Your Payments

Use our Payment Calculator to estimate your monthly mortgage payment. You can input a different home price, down payment, loan term and interest rate to see how your monthly payment changes.

Live Market Pricing

Welcome to our comprehensive live market pricing feature! We understand that securing the best mortgage rate is crucial when making one of life’s biggest investments.

Loan Process

Welcome to our comprehensive guide to the loan process. Whether you’re a first-time homebuyer or experienced investor, understanding the steps involved in securing a loan is crucial. We’re here to simplify this journey for you.

This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Copyright © 2024 | NEXA Mortgage LLC.
Licensed In: AL, NMLS # 1615600 | NMLS ID 1660690 | AZMB #0944059
Corporate Address : 3100 W Ray Rd STE 201, Office 209 Chandler, AZ 85226

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