FHA Loans Jumpstart Home Financing Dreams
Are you looking for a loan with minimal down payment so you can get into the home of your dreams, fast? Consider an FHA loan from Parkside Mortgage, serving clients in Louisville, Prospect, and surrounding Kentuckiana. Our FHA-loan clients enjoy very competitive rates with minimal down payments and easy qualification requirements. FHA loans are a type of government-backed loan that can help you secure home financing for long-term success. When you are ready to seriously consider purchasing a home, contact the Parkside Mortgage team to get started.
The Origin of FHA Loans
FHA loans were created by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). FHA loans are fully funded through private lenders like Parkside Mortgage, but they are insured through the federal government. This loan program was established to encourage private lenders to expand their pool of qualifying applicants so more worthy borrowers could get approval for home financing.
A Nonconventional Financing Option
FHA loans are a type of nonconventional loan because they are insured through a government agency. Other common types of nonconventional loans you’ve likely heard of are VA loans (through the U.S. Department of Veterans Affairs) and USDA loans (through the U.S. Department of Agriculture). All nonconventional loans are privately funded through government-approved lenders, but are regulated and insured through these different federal departments. FHA loans and other nonconventional mortgages have less strict approval requirements for clients with less-than-great credit scores or who may not have the funds to put down a large down payment.
FHA Purchase and Refinance for Eligible Property Types
FHA loans can be used for purchase and for refinance. If you are purchasing a home, eligible property types include:
- Single-family homes
- 2-4-unit buildings in which the borrower lives in one of the units
- Certain condos (with approval)
- Certain manufactured homes (with approval)
If you have already purchased a home with an FHA loan, we also offer refinancing through the FHA Streamline refinance program. This refinancing choice can lower your interest rate for monthly savings on your mortgage and greater savings over time. FHA Streamline refinancing does not have credit score minimums or required appraisals or income documentation, and no additional costs are included in the refinance closing process. FHA Streamline is only available to previously approved FHA borrowers.
FHA Approval Requirements
At Parkside Mortgage, we have clients from all types of backgrounds with many different financial situations. FHA loans are a great choice for clients because they open the door to borrow when conventional loans may not be an option. Though every loan requires an individual approval process, our baseline requirements include:
- At least a 560 FICO credit score
- At least 3.5% down payment
- No delinquent federal debts or judgments (such as delinquent taxes)
- Proof of income or ability to make mortgage payments via pay stubs, tax returns, or other documentation as necessary
Just as our borrowers must meet certain standards, Parkside Mortgage must maintain approved status through the FHA to provide these loans.
A Streamlined Route to Home Ownership
We can give you an answer on an FHA loan fast and help you compare this and other financing choices. We can provide pre-approval with just a photo ID and a single paycheck in some cases. If you want to purchase in Louisville, Prospect or surrounding Kentuckiana, contact Parkside Mortgage about FHA loans today and explore the possibilities.