FHA Loans

Connecticut FHA Mortgage Loan Programs

Connecticut FHA Loan

What are the advantages of a FHA loan?

  • FHA loans can be used to refinance or purchase a new home.
  • It’s the easiest type of mortgage loan to qualify for.
  • Low minimum down payment of just 3.5% on the house.
  • Great for people with less than perfect credit.
  • The Federal Housing Administration insures your mortgage – making obtaining one easier.
  • FHA loans are “assumable” – meaning someone could buy your home from you by “assuming” the loan you have.

What do you need to qualify for a FHA loan?

  • Steady work employment or worked with the same employer for the past two years.
  • Lawful residency in the U.S., valid social security number and be of legal age to sign a mortgage in Connecticut.
  • Minimum down payment of 3.5% on the house. This money can be gifted by a family member.
  • A property appraisal from an FHA-approved appraiser.
  • Mortgage payment must be less than needs to be less than 31% of your gross monthly income (includes principal, interest, property taxes and property insurance).
  • Monthly debt cannot be more than 43% of your monthly income.
  • Minimum credit score of 620.
  • Two years out of Chapter 7 bankruptcy, with good established credit.
  • Three years out of Chapter 7 foreclosure, with good established credit.
  • One year completed of Chapter 7 payment history.