Skip Navigation Download Acrobat Reader 5.0 or higher to view PDF files.

FHA Loan

What is a FHA Loan Mortgage? 

FHA Loan Benefits

As compared to conventional loans, FHA loans generally have smaller down-payment requirements and more flexible underwriting standards. As a result, an FHA loan may help individuals with less than perfect credit and less cash on hand qualify for a mortgage or refinance. This loan is a popular choice for many of our First Time Home Buyers. Here are some of the details of an FHA loan:

  • Low down payment starting at 3.5% of purchase price
  • Credit is more flexible than conventional loan
  • Low Mortgage Insurance Premium (MIP)—upfront 1.75% of the loan amount, annual premium between .45% and .85%
  • Fixed rates available in 15- 30-year terms
  • Down payment money can be gifted by a family member
  • No appraisal or out-of-pocket closing costs for streamlines refinance

FHA Loan Eligibility

To qualify for an FHA loan you need to:

  • Be a U.S. citizen with a valid social security number.
  • Have a steady employment history or worked at the same job for the past two years (going to college may count as a previous job for establishing history if you work in the line you obtained a degree in)
  • Use the loan to purchase or refinance a primary residence.
  • Ensure total debt does not exceed 43% of your income, though FHA is flexible with compensating factors.

Not the right fit for you?
Wheatland Bank offers many additional mortgage products for you to consider. Contact a member of our team today and we will be happy to answer any questions you may have. We will also work with you to identify the right loan for your situation.