FHA Home Loans
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FHA Home Mortgages
At Capital Home Mortgage, a trusted FHA Mortgage Lender, we are dedicated to providing homebuyers and homeowners with FHA Home Mortgages at competitive FHA Mortgage Rates and low fees, all while delivering outstanding customer service. Whether you are a first-time homebuyer, looking to purchase in the city or countryside, or a repeat buyer, a FHA Purchase Home Loans could be the perfect fit for you. We understand that purchasing a home is one of the most significant decisions in life. That’s why we offer dedicated points of contact throughout the mortgage process to ensure a stress-free experience and an on-time closing. FHA Loans are for more than just purchasing a home. FHA also offers FHA Refinance Home Loans, FHA Streamline Refinance Home Loans, FHA Renovation Home Loans and FHA One Time Close Construction Home Loans.
As a direct FHA Mortgage Lender, we manage the entire lending process from start to finish. With in-house processing and underwriting, we guarantee quick, sensible approvals and timely closings, giving us full control from application to funding.
Call today (800) 804-5181 to talk to one of our FHA Loan Officers.
FHA Mortgage Rates
What is a FHA Mortgage Loan?
Overview of a FHA Mortgage Loan?
Many people put off buying a house because “Let’s Face It” getting a loan can seem very overwhelming, especially if you’re not in the best financial shape. Are you concerned that your credit score might get in the way of your chances to get a home loan? Do you think you can’t afford the down payment? Have you gone through foreclosure or bankruptcy in the past? If you wondering if a FHA Insured loan is the right home loan program for you? If you’ve always wanted to own a home, but the situations mentioned above keep you from going for it, FHA loans may be the way to go.
How a FHA Loan Works
- A FHA Home Loan is a mortgage program insured by the US Department of Housing and Urban Development (HUD). The FHA loans aim to boost the housing market and improve housing conditions across the country by making it easier for persons with marginal credit or lower incomes to get a home loan. FHA lenders can offer loans with less rigorous conditions to qualified borrowers with the government’s guarantee.
Pros and Cons of a FHA Loan
- It’s not difficult to get approved for an FHA loan, as long as you have a stable source of income, enough assets for the down payment and reserves, and a credit score of at least 500. FHA loans require a mortgage FICO score of at least 580 to qualify for a 3.5% down payment. If your score is below 580 down to 500, you may still be eligible with a 10% down payment, and certain restrictions will apply.
- There is no minimum or maximum income requirement to Qualify for a FHA loan. What’s essential is stable employment and income. A borrower must have a 2-year verifiable work history; ideally, employed in the same line of work for at least two years. Also, you must be a U.S. citizen or permanent resident with a valid social security number.
- Borrowers must have sufficient assets to show where their source of funds to close the loan will come from. Besides the 3.5% down payment requirement, there are also closing costs and prepaid items to contend with. However, FHA allows gifts funds for the down payment and up to 6 percent in seller concessions for closing costs and prepaid items. While the FHA loan has many positive aspects, it has certain drawbacks that can be huge deal breakers for some borrowers.
Property Standards
- To be eligible for an FHA loan, a home must meet strict structural and safety requirements. A FHA-approved appraiser will conduct an inspection to determine whether or not the home meets FHA’s occupancy and property standards. If the home does not pass the inspection, the owners may have to renovate and make the necessary repairs first, or the borrower can look for another property.
Mortgage Insurance Premiums
- The most considerable drawback of getting an FHA loan is has to pay two different kinds of Mortgage Insurance Premiums (MIP). The first type of insurance is paid upfront, while the second type is payable monthly as part of your mortgage payments.
- In addition, the Mortgage Insurance Premium on FHA loans is for the life of the loan. Unlike conventional loans the insurance payments do not stop after 20 percent of the equity has been satisfied. The only way to eliminate FHA’s Mortgage Insurance Premium is to refinance to a conventional loan or completely pay off the entire mortgage.
Key Features of FHA Mortgages
- Loan Limits – Governed by HUD, loan limits vary yearly and depend on the property’s type (e.g., single-family vs. multi-family homes).
- Down Payment Requirements: Standard down payment is 3.5%, but higher down payments can reduce mortgage insurance.
- Credit Score Standards: 580 minimum score for 3.5%, 500 minimum score for 10% down.
- Interest RatesInfluenced by the borrower’s creditworthiness, market conditions, and debt-to-income ratio. Lower debt-to-income ratios generally enhance approval chances.
- Property Appraisal: An appraisal is required to ensure the property’s value aligns with the loan amount, protecting both parties.
- Loan Terms: Various options, including adjustable-rate and fixed-rate mortgages (e.g., 30-year, 15-year), allowing borrowers to select terms that fit their financial goals.
Additional Considerations
- Market Variability: Economic conditions and changes in housing demand can impact interest rates and loan availability.
- First-Time Homebuyer Programs: To assist first-time buyers with down payments or favorable loan terms.
Apply for a FHA Home Loan Today...
Even with mortgage interest rates continuing to move, now is an excellent time to buy a home. Financing is possible with a FHA Home Mortgage for most people even with a few bumps on the credit history. Our FHA loan specialists at Capital Home Mortgage can answer any questions and help you determine whether the FHA loan is the best choice. Call today (800) 804-5181 to talk to one of our FHA Loan Officers.
FHA Purchase Home Loans
FHA Purchase Home Mortgages
- Simple Qualifying
- Smaller Down Payment
- Seller Paid Closing Costs
- Flexible Underwriting
- Higher Debt to Income Ratios
- Lower Credit Scores Allowed
- Manufactured Housing OK
Great for first-time buyers with limited or less-than-perfect credit, and those with higher debt-to-income ratios. The goal of the FHA is to make homeownership more accessible.
FHA Refinance Home Loans
FHA Refinance Home Mortgages
- Appraisal Required
- 97.75% Max Loan to Value
- Closing Costs Can Be Rolled In
- 80% Max Loan to for Cash-out
- Cash-out Option Available
- County Loan Limits Apply
Cash-Out Refinance: This option allows homeowners to tap into their home’s equity, providing access to funds for various purposes while refinancing their mortgage.
FHA Streamline Home Loans
FHA Streamline Refinance Home Mortgages
- FHA to FHA
- No Income Qualification
- No Appraisal Required
- Closing Costs Can’t Roll In
- No Mortgage Lates Last Year
- Payment Must Drop on Fixed
Designed to reduce the interest rate and lower the monthly payment with reduced documentation, making the process simpler and quicker.
FHA Renovation Home Loans
FHA Renovation Home Mortgages
- Purchase & Refinance Options
- Primary Residence Only
- 1 to 4 Unit, Manu Homes, Condos
- As-is Value, Rehab Costs & Fees
- 110% of After-Improved Value
- 100% for Condos
- 203K Streamline < 70K, Cosmetic Only
- 203K Full > 70K, No Restrictions
The FHA 203K loan is an excellent option for making cosmetic updates to an older home. This loan allows FHA buyers to include the costs in the mortgage.
FHA One Time Close Construction Home Loans
FHA One time Close Construction Home Mortgages
- Primary Residence Only
- Single Family Residence
- Manufactured Homes (singlewide & multiwide)
- Modular Homes OK
- Barndominiums OK
- Land Can be used as Down Payment
- 96.5% Max Loan to Value
- 580 Minimum Credit score
The FHA 203K One Time Close Construction Home Loan combines the land and building into one low down payment single home mortgage.
FHA Home Mortgages FAQs
What is an FHA home loan and how does it work?
- A FHA home loan is a mortgage insured by the Federal Housing Administration that allows lenders to offer more flexible approval guidelines. With FHA backing, Capital Home Mortgage can help borrowers with lower credit scores or smaller down payments qualify for financing.
What credit score and down payment do I need for an FHA Home Loan?
- If your score is 580 or higher, you qualify for the minimum 3.5% down payment. If your score is between 500 and 579, you can still qualify, but you must put down at least 10%.
Can I use gift funds for my down payment for a FHA Loan?
- Yes. 100% of your down payment and closing costs can come from an approved gift source (such as a relative, employer, or government assistance program), provided you have a signed gift letter and a clear paper trail showing the transfer.
Can I buy an investment property or second home with an FHA loan?
- No. FHA loans are strictly reserved for your primary residence. You must move into the home within 60 days of closing and live there for at least one year. Exception: You can buy a 2- to 4-unit property with an FHA loan as long as you live in one of the units. You may also refinance a FHA into another FHA to improve the rate and payment even if the property is now an investment, as long as when the original loan was obtained it was used as a primary residence.
How much is FHA mortgage insurance, and how is it structured?
- FHA loans requires two separate mortgage insurance charges:
- Upfront MIP: Equal to 1.75% of your total loan amount. This is due at closing but is usually financed directly into your loan balance.
- Annual MIP: Paid monthly. For most borrowers putting 3.5% down on a 30-year term, this rate is 0.55% of the loan balance per year.
Does FHA mortgage insurance go away like conventional PMI?
- No, for most borrowers. If you put down less than 10%, you pay annual MIP for the entire length of the loan. If you put down 10% or more, MIP automatically drops off after 11 years. The primary way to drop FHA MIP early is to refinance into a Conventional loan once you reach 20% equity
What are the FHA loan limits?
- FHA sets county-by-county loan limits based on local housing costs. Higher-priced markets have larger limits, while lower-cost areas have lower maximums. Capital Home Mortgage can help you check your county’s current FHA loan limit.
Can I refinance with an FHA loan?
- Yes. FHA offers options like the FHA Streamline Refinance, which makes it faster and easier to lower your rate or change terms if you already have an FHA loan. It often requires less paperwork and may not need a new appraisal.
Does the home have to meet certain FHA requirements?
- Yes. FHA loans require the property to meet safety, security, and livability standards. An FHA-approved appraiser will confirm the home meets these guidelines. Eligible property types include single-family homes, 2–4 unit homes, approved condos, and certain manufactured homes.
Are FHA loans assumable?
- Yes. FHA loans are assumable, which means a qualified buyer can take over your existing loan when purchasing your home. This can be a big advantage if your loan has a lower interest rate than current market rates.
Do FHA loans have prepayment penalties?
- No. FHA loans have no prepayment penalties, so you can pay off your mortgage early, refinance, or make extra payments without added fees.
FHA vs. Conventional Comparison
| Feature | FHA Loan | Conventional Loan |
| Minimum Credit Score | 500 (with 10% down) or 580 (with 3.5% down) | 620 |
| Minimum Down Payment | 3.5% | 3% |
| Upfront Insurance Fee | 1.75% of loan amount | None |
| Monthly Insurance Cost | Based primarily on loan amount, less sensitive to credit score | Based heavily on credit score (higher score = lower cost) |
| Insurance Cancellation | Life of loan (if <10% down) | Drops automatically at 20%–22% equity |
Why Home owners Choose Capital Home Mortgage
Close On Time
Complete Control
Application to Funding
Competitive Rates & Fees
Direct Lender
Full Line of Programs
Exceptional Service
Customer Support
Application to Final Payment
Why Home owners Choose Capital Home Mortgage
Close On Time
Complete Control
Application to Funding
Application to Funding
Competitive Rates & Fees
Direct Lender
Full Line of Programs
Full Line of Programs
Exceptional Service
Customer Support
Application to Final Payment
Application to Final Payment
Capital Home Mortgage Company Reviews
Home Mortgage Programs
Home Purchase Loans
Looking to Purchase a Home?
Looking to Purchase a Home? We have the loan program for you… Call today to speak with a loan officer to discuss your personal mortgage options.
- Primary, 2nd Home, Investment
- Competitive Rates & Fees, No fee Options
- FHA, VA, USDA, Native American
- Conventional, Jumbo & Renovation
- Manufactured, Construction, Reverse
Renovation Home Loans
Looking to Rehab a Home?
Want the Charm of an Older Neighborhood? But want a new place or a fresh look? Why not a renovation loan? Purchase the Perfect Home and make it your own.
- Remodel, Renovate or Repairs
- FHA 203K Streamline
- FHA Full Documentation Rehab
- Fannie Mae Homestyle Reno
- Freddie Mac Home Choice Reno
FHA Home Loans
Great 1st Time Homebuyers
FHA Home Loans are great for first time home buyers, buyers with less than perfect credit, or buyers needing less out of pocket. Call today to get started.
- Smaller Down Payments
- Flexible Underwriting Guidelines
- Higher Debt to Income Allowed
- Lower Credit Scores – Down to 500
- Down Payment Gifts Allowed
VA Home Loans
100% Financing for Vets
Proudly Serving Active Duty servicemen and women, as well as, retired and disabled veterans. Call today to speak with a VA loan officer.
- No Mortgage Loan Limits
- Simple Qualifying
- Higher Debt to Income Allowed
- Lower Credit Scores – Down to 500
- Manual Underwriting Allowed
Conventional Home Loans
Flexibility for Homebuyers
Conventional Home Loans are the best option for flexibility of property types and for mortgage loan terms. Call today to get speak to a loan officer.
- Primary, 2nd Home, Investment
- Single and Multi-Family Properties
- Variable Mortgage Insurance Options
- Low Rates & a Variety of Terms
- Renovation Programs Available
Jumbo Home Loans
Non-Conforming Home Loans
Jumbo Home Loans also called Non Conforming Home Loans are great options for buyers needing financing outside of agency limits. Call today.
- Primary & 2nd Homes
- Variety of Mortgage Programs
- Simple Qualifying for Veterans
- Investor Specific Guidelines
- Credit Score Minimums
USDA Home Loans
100% Rural Home Loans
USDA Loans are a great option for families wanting to live outside of the city. Call today to speak with a loan officer to discuss your personal loan options.
- Primary Residences
- No Down Payment Required
- New Manufactured Homes Allowed
- Closing Costs / Repairs Rolled In
- Geographic and Income Limits Apply
Native American Home Loans
Hud 184 Home Loans
HUD 184 Home Loans are solely for Native American and offer a variety of benefits. Call today to speak with a loan officer to find out more.
- Primary Residence Only
- Manual Underwriting for All Loans
- No Credit Score Requirements
- Tribal Grants Allowed
- Purchase, Refinance, and Renovation
Manufactured Home Loans
Great Alternative Housing
Manufactured Home Loans offer options to purchase an existing residence or build your dream home on your own land. Call today to speak to a Loan Officer.
- Existing Purchase or Refinance
- New Construction
- One Time Close Land/Home Combo
- Lock at Contract
- FHA, VA, USDA, Native American
Reverse Mortgage Loans
Your Home at Work
Reverse Mortgage Loans offer seniors options to use their home’s equity for cash or to eliminate payments. Call today to get speak to a Reverse Loan Officer.
- Primary Residence Only
- Simple Qualifying – Equity Based
- No Credit Score Requirements
- Minimum Age 62
- Purchase, Refinance, and Cash-Out
Non QM Home Loans
Making Mortgages Possible
Looking for Non Traditional Home Mortgage Loan? Contact a Loan Officer Today to discuss the alternative mortgage options currently available.
- Purchase, Refinance & Cash-out
- Primary, Secondary, Investment
- Full Doc Programs
- Alt Doc Programs
- Corporations OK
One Time Close Home Loans
Build Your Dream Home
Want to Build? But unsure of what the future looks like? Remove the risk with a One Time Close Construction Loan. Call today to see how a OTC loan works.
- Primary Residences Only
- One Time Close
- Lock Rate at Closing
- Traditional Final Mortgages
- No Payments During Construction
Refinance Mortgage Loans
Rate & Term Refinance
Refinancing can be a hard decision and may result in finance charges that may be higher over the life of the loan. Consult with your loan advisor for details.
- Lower Monthly Payment
- Shorten Mortgage Term
- Streamline Options Available
- Appraisal Waivers Allowed
- VA IRRRL’s
Cashout Mortgage Loans
Equity Mortgage Loans
Cash-Out Mortgage Loans make use of the equity in your home. Refinancing may result in finance charges that may be higher over the life of the loan. Consult with your loan advisor.
- Debt Consolidation
- Investment Opportunities
- Home Improvement
- Dream Vacation
- Higher Education
State Specific Mortgage Information