FHA loans are a terrific way to finance a new home purchase. With as little as 3.5% down, you could be on your way to owning your own home at record low prices!
FHA, the Federal Housing Administration, was created in 1934 and offers government insurance on mortgage loans, which allows mortgage lenders to work with consumers with less than perfect credit.
While technically there is no minimum credit score for an FHA loan, the typical minimum score to qualify in today's tight credit market is 620. Higher interest rates are available on FHA loans with credit scores between 530 and 619. At Merchants, our goal is to see all of our customers achieve the 620 score and receive the premium interest rate. Ask our BuyReady Team how you can qualify today.
FHA does require full documentation on all purchase transactions. This means that you must be able to prove your income through W-2's, paystubs and/or Two Years of Income Tax returns.
There are currently no Zero down programs available through HUD, but some states or local housing authorities may offer down payment assistance. Many of the programs have run out of funds, which makes it difficult for Merchants to keep tabs on what down payment assistance programs are still available. We strongly recommend that you check with your city housing authority or state housing board to see what might be available to you. Typically FHA will allow most grant programs from non-profit housing authorities.
HUD $100 Down Program. This program is available to anyone who qualifies for an FHA loan. It is a standard FHA loan for consumers purchasing a HUD foreclosure. In California, there are not an abundance of HUD foreclosures as FHA lending in California prior to 2007 was virtually non-existent. For Arizonans, you should check with your realtor to see what HUD foreclosures are available in your area.
