FHA Loan | Mortgage Investors Group

Translate this page:

FHA Loan

By Mortgage Investors Group
4.97 on Zillow
from 3184 reviews

 

Federal Housing Administration

The FHA loan program is one of the most popular mortgage programs in the United States. The Federal Housing Administration (FHA) does not lend money, but insures loans made through FHA-approved lenders, which reduces their risk if the borrower defaults. This allows lenders to provide loans to borrowers who would otherwise not qualify, including those with average credit or low to middle income.

Following a great deal of defaults and foreclosures, the FHA mortgage program was put in place in the 1930s to offer mortgage lenders insurance against their risk and make home loans more affordable and accessible in Allgood, AL.

Apply for FHA loan - Mortgage Investors Group

Benefits of FHA Loans in Allgood, AL


 

There are many reasons to consider an FHA mortgage:

  • Down payment as low as 3.5 percent
  • Down payment and closing-cost money can be gifted from a family member
  • FHA loans are easier to get after bankruptcy or foreclosure than a conventional loan
  • Easier to qualify with underwriting that focuses on job security, employment and income
  • No prepayment penalty
  • Closing costs can be rolled into your loan
  • FHA loans are assumable, which may be a positive selling point in the future
  • FHA loans are good for good credit/income borrowers who don’t have liquid funds for down payment
Benefits of FHA loans - Mortgage Investors Group

Upfront Mortgage Insurance Premium (MIP)

The upfront MIP requires a premium of 1.75 percent of the purchase price. This will be $5,250 on a $300,000 loan.

Annual MIP

This is charged monthly and depends on your loan-to-value ratio and terms. It can range from 0.45 percent to 1.35 percent of the purchase price. Loans with a longer term, and a loan that is less than $625,000, have the highest annual premium.

FHA loan requirements - Mortgage Investors Group

FHA Loan Requirements in Allgood, AL

Not sure if you qualify for an FHA mortgage? The good news is that standards are looser than a conventional loan.


 
  • Stable employment history (in same industry) or the same employer for a minimum of two years
  • Down payment of at least 3.5 percent *Can be gifted
  • Home must be a primary residence
  • Property appraisal conducted by an FHA-approved appraiser
  • Front-end ratio of less than 31 percent of gross monthly income. This includes mortgage payment, homeowners insurance, property taxes and HOA fees.
  • Back-end ratio of less than 43 percent. This includes your mortgage payment, along with monthly debt obligations
  • Must be at least three years past foreclosure or two years out of bankruptcy, if applicable
MIP Allgood, AL

Contact Us Today

MIG mascot peeking out their head
    1. How can Miggie help you today?

      You are in good hands! Miggie will walk you through our interactive form and connect you to your dedicated loan officer.

    1. Select your spending range...
    1. Select your current interest rate…
    1. We will use this information to determine what kind of loan is right for you.
    1. Select your timeframe…
    1. Active-duty military and Veterans may qualify for a VA Loan with $0 down and no PMI.
    1. What is your name?
    1. A verification code will be sent to the number that you enter below.
    1. Enter your code to confirm your phone number

Let's Start Your Homebuying Journey.

MIG mascot sitting at desk
Call Us Apply Now Chat With Us