The primary goal of the Federal Housing Administration (FHA) is to improve the housing market and protect lenders in the event a borrower was to default on their mortgage. The FHA was created as part of the National Housing Act and later became a part of the Department of Housing and Urban Development (HUD). The FHA has grown to become one of the biggest insurer of mortgage in the United States. North Georgia Lending is proud to offer the most competitive rates and flexible financing options on Forsyth County FHA loans.
A Forsyth County FHA loan can be used for a number of different purposes including new home purchases, refinancing an existing mortgage, renovation products and even reverse mortgages. Cash-out refinance options are also available to buyers in need of capital for home repairs or debt consolidation, while streamline refinances are available to reduce the interest rate on current mortgages.
Forsyth County FHA loans offer relaxed credit requirements and lower down payment options making them easier to qualify for than other loans. Buyers can potentially qualify for a FHA with a down payment of 3.500% of purchase price and a credit score of 580, however, we can give you guidance to raise your credit to this level if needed. If a buyer does not have adequate savings to cover a down payment family members are able to gift the money. Since these loans are easier to qualify for, FHA loans tend to be very popular among first time homebuyers in Forsyth and surrounding counties.
Forsyth County FHA Loan Requirements:
-Income Requirements: A debt to income ratio of 43% or less is generally required. A higher debt to income ratio may be approved in some circumstances.
-Down Payment: A down payment of 3.500% of the purchase price is the minimum down payment allowed, although if a buyers credit score does not support this a higher down payment may be required.
-Credit Score: Typically, the minimum credit score is 580. However, borrowers with a lower credit score could potentially qualify.
-Property Requirements: All properties purchased through the FHA loan program must meet security, safety and soundness requirements set forth by FHA.
There are two different mortgage insurance premiums (MIP’s) that are required with all Forsyth County FHA loans. First is an upfront premium of 1.750% of the purchase price. Buyers have the option to pay this at closing or roll the premium into the mortgage. The second is a monthly insurance premium that will be based on a number of factors including loan amount, length of mortgage and loan to value ratio.
The Single Family FHA loan limit for Forsyth, Dawson, Fulton, & Gwinnett Counties is $358,800.
At North Georgia Lending we are committed to helping our clients with all of their Forsyth County FHA loan needs. Whether you are purchasing your first home or looking to refinance your current FHA loan at a lower rate, we can help!
Contact North Georgia Lending today at 678-455-8051 with any questions you may have on Forsyth County FHA loans or how to get pre-approved.