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FHA Loans

FHA loans are mortgages guaranteed by the Federal Housing Administration (FHA). The FHA doesn’t actually provide the loans, private lenders do. As a government insured loan program, it enables FHA-approved lenders to take more risk with qualifying people for a loan. This provides the opportunity for more Americans to own their own home.

Who are FHA loans for?

Home Purchase

FHA loans make buying a house more affordable with competitive interest rates, low down payment requirements, and flexible credit requirements. Tailored to borrowers with lower credit scores, an FHA mortgage makes it possible to buy a home with only 3.5% down. This is a great option for borrowers who may not qualify for a conventional home loan.

These loans are a great fit for first-time homebuyers, but you may also qualify for this type of mortgage even if you’ve purchased a home before.

Mortgage Refinance

You can also refinance your home with an FHA loan. The most common FHA refinance options available are:

  • FHA Simple refinance is used when you want to reduce your interest rate and/or loan term length.
  • FHA Cash-out refinance allows you to take out a loan for more than your current one and receive cash back for home improvement projects, debt consolidation, etc.
  • FHA Streamline refinance: if you have an existing FHA mortgage, this program offers less paperwork and faster closing as a new FHA appraisal is not required.
Lower Rates
Lower Fees

30-Year FHA

98.875
2.250
3.361
Lender Fees:
Discount Points:
1.000%
Admin Fee:
$1,295
Credit Report:
$0
Processing:
$0
Underwriting:
$0
Doc Prep:
$0
Funding:
$0
Tax Service:
$0
100
2.625
3.656
Lender Fees:
Lender Credit:
($1473)
Admin Fee:
$1,295
Credit Report:
$0
Processing:
$0
Underwriting:
$0
Doc Prep:
$0
Funding:
$0
Tax Service:
$0
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Rates as of:
6:49AM Pacific Time on September 23rd, 2021

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If you think our rates are good, you should see our fine print.*

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What are the benefits of FHA loans?

  • Low money down — as little as 3.5% down payment.
  • You don’t need a high credit score.
  • More flexible debt-to-income (DTI) ratio — a DTI of no more than 50% and steady employment history. Estimate your DTI by adding your monthly debt payments (such as credit card and car payments) and dividing the total by your monthly income before taxes.
  • The upfront mortgage insurance premium (UFMIP) can be financed into the loan. The amount is usually equal to 1.75% of your loan amount.
  • Closing costs can be added to your loan balance — which could be anywhere from 2% – 6% of the purchase price.
  • Existing mortgage refinance — simple, cash-out, and streamline loan refinance options.
  • FHA Loan amount is based on location.
cozy living room beige couch depicting fha loan purchase

Frequently Asked Questions

Answers to common questions about FHA mortgages.

What is an FHA loan vs conventional?

A conventional loan is the most common type of home loan. The requirements to qualify are more stringent than FHA as the lender will want to make sure you are a good credit risk since this type of loan is not backed by a government agency. Benefits include lower interest rate, less paperwork, easier to pass home inspection, and you can avoid paying personal mortgage insurance (PMI) if your down payment is large enough.

An FHA loan has more lenient requirements because it is insured by the Federal Housing Administration (FHA). This type of loan can be easier to qualify for with a lower credit score and has lower down payment requirements. However, FHA loans always require mortgage insurance (both an up-front mortgage insurance premium and monthly installments) and have stricter property standards. These loans are designed to help people purchase their first home but may also be a good option when refinancing a mortgage.

How do you get approved for an FHA loan?
  • Have a valid SSN and be a legal resident of the US.
  • Have verifiable and steady income.
  • Have a debt-to-income ratio less than 50%.
  • Have a minimum down payment of 3.5% (varies based on credit score). However, the money can be gifted from a family member.
  • The property must be used as your primary residence.
  • The property must be appraised by an FHA-approved appraiser and needs to meet certain standards.
What is the downside of an FHA loan?
  • Must pay FHA mortgage insurance – both up-front as part of your closing costs and monthly as part of your monthly payment, paid for the life of the loan.
  • More stringent property requirements – the house must be structurally sound and meet specific standards. If it is a fixer-upper, an FHA loan might not work.
  • Must be your primary residence – FHA loans can not be used for vacation or investment properties.
  • Limited loan size – the maximum loan amount is based on the property location.
More FAQs
Alan f.
- LendingTree

The team at Upwell did an excellent job in the home mortgage loan process. The rate and fees were very competitive and no high pressure sales gimmicks that I was receiving from others. I had a tight closing deadline and they met it. I cannot say enough about the quality... read more

Caroline C.
- LendingTree

Jeff and his team were incredible! They were fast acting, were incredibly responsive, knowledgeable, and open to answering all of my many questions. No doubt that next time I need a loan officer will I call Jeff! By the end I felt like part of his family

Ciara R.
- Zillow

Purchasing a home can be a scary and nerve wracking experience, but not when you have the right people in your corner. I can’t imagine working with anyone else than Eddie Anderson and his team because they made each step so seamless and stress-free. They are so detail oriented, so... read more

*Additional lender fees:

$1295 UW/Admin ($0 for VA loans)

$775 typical appraisal fee (varies)

$0 origination, $0 credit report, $0 processing, $0 doc prep, $0 funding, $0 wire transfer, $0 flood certification.

Always scan the fine print for origination and/or other fees.  When getting verbal quotes from lenders who don’t post rates, request they email a screenshot of their pricing to be sure it matches their verbal quote.

Some mortgage companies quote different rates based on how you were referred to them.  Some of their rates also vary by loan officer and/or by branch.   Upwell rates are consistent regardless of source.

Points are costs usually collected at closing for obtaining a specific rate and may be paid by the borrower or the home seller or may be split between them. Numbers appearing in brackets are credits – example ($2000).

APR=Annual Percentage Rate: A rate that reflects the actual annual cost of a loan and includes the loan interest rate, private mortgage insurance, points and some fees.

The APR includes the approximate cost of prepaid finance charges, including 10 days of prepaid interest, points associated with the rate displayed, and some third-party fees. It does not include other closing costs. Actual APRs for individual loans may differ. All loan applications are subject to credit and property approval. Sample payments shown include only principal and interest. Your interest rate will depend on specific characteristics of your transaction and your credit profile up to the time of closing. Adjustable Rate Mortgage (ARM) interest rates and payments are subject to change during the loan term. That change can increase or decrease your monthly payment. If your down payment or equity is less than 20%, mortgage insurance will be required, which will increase the monthly payment. Assumes no other loans or liens on subject property. Property and/or flood hazard insurance may be required. Maximum loan limits may apply. Additional rates and programs are available.

Hazard insurance is required, and flood insurance may be required if the property is located in a flood zone. Payments do not include amounts for property taxes and insurance premiums. Actual payments may be higher.

This rate sheet is not a credit decision or a commitment to lend and your rate will depend on various factors including your type of loan, credit profile, property value, occupancy, loan size, etc. Rates and product availability may also vary based on the State or region in which your financed property is located. Offer is subject to normal credit qualifications. Rates are subject to change. Consult your tax advisor regarding the deductibility of interest. Some restrictions may apply.

30-Year Fixed-Rate FHA Loan:

98.875
Rate is fixed. The payment on a $386,000, 30-year fixed rate loan at 2.250% and 96.5% loan-to-value (LTV) is $1,772 with 1 points due at closing. Payment includes a one time upfront mortgage insurance premium (MIP) at 1.75% of the base loan amount and a monthly MIP calculated at 0.85% of the base loan amount. For mortgages with a loan-to-value (LTV) ratio of less than or equal to 90%, the monthly MIP will be paid for the first 11 years of the mortgage term, or the end of the mortgage term, whichever comes first. Thereafter, the monthly loan payment will consist of equal monthly principal and interest payments only until the end of the loan. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Some state and county maximum loan amount restrictions may apply. The Annual Percentage Rate (APR) is 3.361%.
100
Rate is fixed. The payment on a $386,000, 30-year fixed rate loan at 2.625% and 96.5% loan-to-value (LTV) is $1,848 with -0.375 points due at closing. Payment includes a one time upfront mortgage insurance premium (MIP) at 1.75% of the base loan amount and a monthly MIP calculated at 0.85% of the base loan amount. For mortgages with a loan-to-value (LTV) ratio of less than or equal to 90%, the monthly MIP will be paid for the first 11 years of the mortgage term, or the end of the mortgage term, whichever comes first. Thereafter, the monthly loan payment will consist of equal monthly principal and interest payments only until the end of the loan. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Some state and county maximum loan amount restrictions may apply. The Annual Percentage Rate (APR) is 3.656%.
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