Frequently Asked Questions

The first step to qualifying for an FHA home loan is to get matched with a lender who will offer you the lowest interest rate possible. We can help you find that lender when you fill out our form to receive a free quote.

Once you’ve been matched with an FHA home mortgage lender, you’ll work with your mortgage broker to submit all the necessary paperwork to qualify for your loan. This includes agreeing to a credit check, submitting proof of income (such as recent pay stubs and income tax returns), and submitting proof of funds for your down payment (such as a bank account or 401(k) statement).

When it comes to your credit score, and FHA loan is the easiest home loan for which to qualify. Currently, lenders are qualifying borrowers with FICO scores of at least 580.

An FHA loan requires you to put down a downpayment equal to 3.5% of the purchase price of the home. The downpayment can come from your savings account, your 401(k), or it can be a gift from a friend or family member if appropriate paperwork is signed and filed to confirm there is no requirement to repay the
gifted downpayment.

In addition to a downpayment, closing costs are due at the time of closing, which typically equals 2 to 5% of the purchase price of the house. Many FHA loan borrowers negotiate with the sellers of their homes to have the seller pay these out-of-pocket closing costs.

Many sellers consider offers from pre-qualified buyers to be stronger. For this reason, if you are house-hunting we suggest you work with us now to be matched to a lender and pre-qualified for an FHA loan. Once you’re pre-qualified, your mortgage broker will give you a pre-qualification letter that your real estate agent will submit with your offer, making your offer stronger in the eyes of many sellers.

If all the appropriate paperwork is submitted promptly, you may be able to become pre-qualified for an FHA loan in a matter of a few days. After you receive your pre-qualification letter and get into a contract for a home, your loan will go into underwriting to confirm qualification and finalize your loan. This process typically takes around 30 days, after which time you can officially purchase and close on your house?

When you’re working on getting your house closed, you may hear your mortgage broker talk about an escrow account. This is a special savings account that is held by your mortgage loan servicer. It’s used to save money for annual fees related to your house including property taxes, homeowner’s insurance, and flood insurance (if required by your lender). Every mortgage payment you make will include 1/12th of these estimated annual costs, and when your property taxes and insurance payments are due, your mortgage company will use the money in your escrow account to make prompt payments.

Sometimes, your mortgage broker will tell you that the best possible mortgage for you includes paying what’s called mortgage points. Mortgage points, which are sometimes called discount points, are fees that you pay directly to the lender at the time of closing to secure a lower interest rate on your loan. It’s sometimes referred to as “buying down the interest rate.” Mortgage points are typically no more than a few thousand dollars and are an option for securing a lower rate, but never the only option you have at securing a home loan.

Your monthly mortgage payment will include your principal payment (payments to pay down the balance of your home loan), interest payments, and escrows including 1/12th of the annual cost of your property taxes, homeowner’s insurance, and any other insurance required by your lender (such as flood insurance if your home is located in a flood zone). If you have an FHA loan, your monthly mortgage payment will also include Private Mortgage Insurance (PMI).

Mortgage rates move up and down all day long. You can lock in your mortgage rate so it won't change by filling out the appropriate paperwork from your mortgage lender within their required amount of time, usually 24 hours. Once you’ve locked in your rate, it won’t move despite what the markets do.

Becoming prequalified is the first step to obtaining a mortgage loan. You submit information to the lender, and based on that information, they’ll give you a ballpark amount of how much they’lllet you borrow from them. But being prequalified doesn’t mean that the loan is a done deal.

The next step in the mortgage process is to become preapproved. You’ll become preapproved when your lender confirms the information you’ve submitted, takes into account your financial situation, and determines how much of a home loan you can afford to borrow, based on industrybenchmarks. The preapproval process includes filling out a mortgage application and submittingto a credit check, income verification, and down payment funds verification.

FHA Loan Search is a platform that was created by mortgage professionals to educate homebuyers about the ins and outs of the homebuying process. FHA Loan Search offers a full suite of features including a variety of calculators, home credit and loan information, and expert mortgage tips.

FHA Loan Search can help you compare interest rates across mortgage lenders, whether you’re in the market for a new home or you’re looking to refinance your existing mortgage to ensure you get the best rate possible.

Our process starts by collecting some basic information about you so we can better assess your mortgage needs. After learning more about you, we will send your request to our network of mortgage lenders to help you find the lowest rate possible.

No, FHA Loan Search does not impact your credit score in any way.

In most cases, you will need to speak to a mortgage professional over the phone to complete your application and obtain a mortgage.

Simply put, FHA Loan Search is for everyone! We strive to provide helpful information for everyone, whether they’re a first-time homebuyer or have been through the process before.