FHA mortgage loans are federally qualified loans and insured by the U.S. Department of Housing and Urban Development (HUD).
These have the most flexible guidelines regarding credit score minimums and higher debt ratios.
FHA loans are an attractive option, especially for first-time homeowners in Mankato area and thoughout Minnesota:
- Generally easier to qualify for than conventional loans.
- Lower down payment requirements-3.5% Down. This is can come from a variety of sources. Down payment funds can come from a combination of your own funds, gift or a secured loan
- Higher debt ratio limits.
- Allows for cosigners.
FHA Loan also work great for refinacing