FHA Loans in Maryland, Washington, DC & Virginia

FHA-Approved Mortgage Lender

Homebuyers that are looking to take out a mortgage with more favorable terms should consider applying for FHA mortgages in Maryland. FHA (Federal Housing Administration) loans are a type of federal assistance meant to help provide lower income Americans the ability to borrow money so that they can become homeowners. The FHA loan program first began in the 1930s during the Great Depression when foreclosure rates rose drastically. The program was meant to provide lenders with insurance. The way it works is that the FHA insures the loans offered by private lenders instead of providing loans itself.

The Benefits of an FHA Loan

The following are just a few benefits of applying for an FHA loan:

  • Easier to qualify for – Since the FHA insures the loan for lenders, it makes borrowers less of a risk, therefore making it easier to qualify.
  • Lower down payments – As long as you have a credit score above 580, then your down payment can be as little as 3.5 percent, which is much less than more standard private mortgages, which often require a down payment of 5 to 20 percent.
  • Covered closing costs – There are a lot of closing costs involved with buying a home. The FHA allows lenders, builders and sellers to pay some of the closing costs on behalf of the borrower. These closing costs can include the title expenses, the credit report costs or the appraisal fee. Lenders, builders and sellers may be willing to do so as a way to provide buyers an incentive to buy the home.
  • Special loan products – The FHA can provide a special loan, known as a 203(k), that allows buyers to finance upwards of $35,000 for nonstructural repairs to the house, such as replacing cabinets or light fixtures.

Qualify For an FHA Loan in MD, DC or VA Today

Every lender has its own rates and terms, which means that you should compare several FHA-approved lenders in Maryland, Washington, DC, or Virginia before choosing an FHA loan. The lender will analyze your debt-to-income ratio in order to determine if there is a risk to approving your loan request. By looking at your debt-to-income ratio, lenders will be able to figure out what you can realistically afford based on your monthly income and expenses. Lenders also look at a number of other factors, including your payment history on other debts, in order to determine your eligibility in addition to the terms of your loan. You’ll need to have at least a 500 credit score in order to be eligible as well.

Keep in mind that if you qualify for an FHA loan, you will have to pay for two mortgage insurance premiums. The first will be for 1.75 percent of the loan and will need to be paid upfront – although it can be financed as part of your loan amount. The second is known as the annual premium even though it’s paid monthly.

Apply Now

For more information about qualifying for FHA loans or to start your application process, contact Alex Echeandia, a licensed  FHA-approved mortgage lender in Maryland, D.C. and Virginia.