There Are TWO Options for an FHA Loan
There are lots of reasons to purchase property with an FHA (or Federal Housing Administration) loan! Here at the James Beard Team office, we do hundreds of FHA loan transactions a year for our community of Southern Oregon, and it’s one of the most popular government-backed home loans in the U.S.
FHA loans are beneficial for a variety of reasons. One of the best factors is the low interest rates. Some FHA borrowers with a lower credit score could qualify for a loan at the same interest rate that a conventional borrower would qualify for with a higher credit score. This is a huge advantage for many borrowers!
Another benefit to an FHA loan is that the Federal Housing Administration allows sellers to cover up to 6% in closing costs, while sellers can only pay up to 3% on conventional loans. That makes a big difference for a young couple purchasing their first-ever home!
For many, an FHA loan is the easiest way to get into a new home because it doesn’t require a huge down payment. Most lenders and real estate agents talk about the benefits of an FHA loan offered to borrowers with a credit score of 580 or higher with 3.5% down...but did you know that there are also FHA loans available for those with a lower credit score? Borrowers with a credit score as low as 500 can qualify for an FHA loan, as long as they are able to put 10% of their purchase price down (compared to other loan options that require a 20% down payment).
Most lenders in Southern Oregon are unable (or unwilling) to offer mortgage loans to borrowers with a credit score lower than 620. But at CrossCountry Mortgage, we believe everyone deserves to achieve their homeownership dreams, and we provide options for buyers who may not have a perfect credit history.
In September of 2020, the Almeda Fire tore through the Rogue Valley and destroyed nearly 3,500 homes and dwellings. One of the ways our team helped the communities of Phoenix, Talent, and Medford was helping homeowners purchase a property after their own home was destroyed. Most of the people who lost their home didn’t have homebuying on their radar, and therefore weren’t prepared for the process of qualifying for a home loan. But we were able to help so many of those buyers find their way into a new property and get them an approval, even with a less-than-perfect credit score!
Our primary goal as one of the leading mortgage lenders in Southern Oregon is to serve our community well. We value integrity and communication, and we want to help as many buyers as possible accomplish their homeownership goals. If you’re excited about purchasing your first home, and aren’t sure how to start the qualifying process, please reach out to us today! We will help you get pre-qualified, or set you on the right track to get pre-qualified in the near future! Call us today — we can’t WAIT to help you get started on your journey as a homeowner!