FHA Loan

FHA mortgage loans are issued by federally qualified lenders certified by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development. These mortgage loans have less underwriting restrictions and can be easier for a first-time homebuyer to get a home loan.

FHA loans are an attractive option, especially for first-time homeowners:

  • Generally easier to qualify for than conventional loans.
  • Lower down payment requirements.
    • 3.5% cash down is required
  • Cannot exceed statutory loan limits.
    • $271,000 if the limit for most parishes in Louisiana
    • $347,000 for a duplex
  • PMI Has dropped from 1.35% to .85% in 2015
  • Less restrictions on credit
    • Minimum 580 credit score
    • At least one tradeline