If you’re a homebuyer—or simply curious about flexible financing—FHA loans can open doors when strict conventional guidelines stand in the way. Backed by the Federal Housing Administration, FHA mortgage loans allow down payments as low as 3.5 percent and accept credit scores many traditional lenders turn away. By working with Change Home Mortgage, you’ll gain a clearer path to homeownership that may fit your budget and long-term goals.
What Is an FHA Mortgage Loan?
An FHA home loan is just like a regular mortgage—except the government insures part of it. That insurance gives lenders (including Change) confidence to approve buyers who have lower scores or smaller down payments. In short, the FHA shares the risk so more people can buy homes.
How Do FHA Loans Work?
Below are the basics, whether you’re comparing options or getting ready to apply:
Credit, Loan Limits & Down Payments
- Credit score: 580 or higher qualifies for 3.5 percent down; lower scores may still work with 10 percent down.
- Loan limits: Set by county each year—ask Change Home Mortgage or check HUD’s site for local numbers.
- Down payment: 3.5 percent minimum—gift money allowed.
Why Homebuyers Like FHA Loans
- Low cash up front: Ideal if savings are limited.
- Credit-friendly: Lower minimum scores than most conventional loans.
- Assumable: A future buyer can take over the loan—an added perk if rates rise.
Main Types of FHA Home Loans
FHA Purchase Loan
Perfect for first-time or move-up buyers who need just 3.5 percent down and a more forgiving credit score. Flexible underwriting makes it the go-to entry product at Change Home Mortgage.
FHA Rate-and-Term Refinance
Refinance an existing mortgage—FHA or conventional—to secure a lower rate or shorten the term without taking cash out. Ideal for payment-reduction or equity-build strategies.
FHA Streamline Refinance
Designed for homeowners who already have FHA mortgage loans. Minimal documentation, often no appraisal, and a faster closing timeline help borrowers capture lower rates with less hassle.
FHA Cash-Out Refinance
Tap into home equity for renovations, debt consolidation, or other big expenses. Borrow up to 80 percent LTV; upfront and annual mortgage-insurance premiums apply.
FHA vs. Conventional Loans (At a Glance)
Are FHA Home Loans Right for You?
Consider an FHA home loan with Change Home Mortgage if any of the following sound familiar:
- Credit score around 580+.
- Limited funds for a down payment.
- First-time buyer needing help with closing costs.
To Sum It Up
Whether you’re purchasing your first home or looking for a more flexible refinance, FHA loans offer affordability and a smoother approval path. Partner with Change Home Mortgage to unlock these benefits and move into a new home—maybe sooner than you thought possible.
Frequently Asked Questions
What are FHA loans best for?
Helping people with smaller down payments or lower credit scores buy a primary home.
How do I apply for an FHA Home Loan?
Gather income documents, your credit report, and property details, then apply through an FHA-approved lender like Change Home Mortgage.
Who qualifies for FHA Mortgage Loans?
A 580+ credit score, steady income, an acceptable debt-to-income ratio, and a home within local FHA loan limits.
Are FHA loans hard to close?
No—the paperwork is similar to any mortgage. Working with an experienced lender streamlines the process.
