We have the answers to the most common FHA loan questions

Have questions about how to apply for an FHA loan?

We have answers. Please feel free to reach out directly to our loan officers if you have further questions. We look forward to hearing from you!
A mortgage loan that's insured by the Federal Housing Administration (FHA). They allow for down payments of 3.5% for credit scores of 580+. Here's a blog that explains more.
No. The FHA insures loans, but they don't actually originate home loans.
Typically, you can qualify for these loans with a 3.5% down payment. The mortgage insurance percentage on FHA loans tend to be higher than for non-FHA mortgage types. For some borrowers, this is more manageable since the insurance payments are spread out, and the upfront costs can be lower.
Because the loan is guaranteed by the FHA, low to moderate income families can qualify for home loans without the strict financial restrictions other loan types impose.
Typically, borrowers need to be at least 3 years out of foreclosure and have re-established good credit before they can qualify for an FHA loan.
Typically, borrower needs to be at least two years out of a bankruptcy and have re-established good credit before they qualify for an FHA loan.
To qualify for a 3.5% down payment, you will need a FICO score of at leat 580. However, you may still quality with a lower score, although you'll be required to put down 10%.
It will depend on the amortization schedule and your loan to value (LTV) ratio on your loan origination date.
Yes! NASB is approved by the Federal Housing Authority to help you get an FHA loan.
FHA stands for the Federal Housing Administration. They provide mortgage insurance on loans made by FHA-approved lenders and insure mortgages on single-family homes, multifamily properties, residential care facilities and hospitals.

To qualify for an FHA Loan:

You must have a valid Social Security number and be a legal resident of the United States You'll need to have steady employment history
A down payment of at least 3.5% is required for a credit score of 580 or higher. However the money can be gifted from a family member
FHA loans are only available for a primary residence
The property must be appraised by a FHA-approved appraiser and needs to meet certain standards
The front-end ratio (mortgage payment plus homeowners association fees, property taxes, mortgage insurance, home insurance) will need to be less than 31% of your gross monthly income
Monthly debts (credit card payments, car payment, student loans, etc.) need to be less than 43% of gross monthly income
Prior foreclosures need to be season over 36 months and you need to have re-established good credit
Prior Chapter 7 Bankruptcies need to be seasoned over 24 months since the discharge date
Prior Chapter 13 Bankruptcy – FHA allows to be not discharged as long as they have satisfactorily made 12 months of payments of the payout period

This blog has more information.

To pre-qualify for an FHA loan, you'll need:

1. Verifiable income.
2. Ability to afford the housing payment and any existing debt.
3. Have at least 3.5% for a down payment.
4. Have an established credit history.
5. Have a FICO score of at least 580.
6. Find a home that doesn't exceed FHA loan limits.
7. Begin the application process.

Here's a blog that has more information.
To qualify for an FHA loan, you must have a credit score of at least 500. You will be eligible for up to 90% with this score, which means you will have to provide a 10% down payment. If you've gone through a bankruptcy, you will have to wait at least one year after filing Chapter 13, and at least two years after filing Chapter 7 bankruptcy before you can apply. Your debt-to-income (DTI) percentage will also need to be in the acceptable range; the maximum DTI to qualify for an FHA mortgage is 31%.

Here's among the documents you may need to apply for an FHA loan:

  • Loan application
  • Form HUD-92900-A
  • Social security number verification
  • Credit Report
  • Verification of employment
  • Tax returns
  • FHA amendatory clause
  • Appraisal report
  • Bankruptcy and discharge papers (if applicable)
  • Drivers License
To qualify for an FHA loan, you must have a credit score of at least 500. You will be eligible for up to 90% with this score, which means you will have to provide a 10% down payment. A score of 580 or higher will qualify you for the lowest down payment amount.
There is not an option to get an FHA loan with no down payment, but the minimum down payment is only 3.5%. There are also some state and local programs that may offer assistance to home buyers who need financial aid. 
Cindy L.
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