FHA Loans

J.G. Wentworth provides FHA loans to help homebuyers of all backgrounds finance their dream homes in a convenient and affordable way. For a number of years, we have been one of the nation’s top providers of home mortgage loans, incorporating the latest technology to streamline our process and supply homebuyers with timely loan turnarounds. Our experienced loan specialists can guide the way toward finding the FHA loan that suits your needs. Call J.G. Wentworth or complete our online contact form to get a free, personalized quote today.

What are FHA Loans?

Loans that are backed by the Federal Housing Administration are referred to as FHA Loans. These specific types of federally-insured loans can be used for primary homes, investment properties, or vacation homes, and are designed to provide an opportunity for financing for those who cannot afford to make a significant down payment. With an aim toward helping low-to-moderate income homebuyers, FHA loans from J.G. Wentworth can help more people obtain mortgage financing for their homes.

In most cases, FHA loans are available with varying rate and term agreements, including 15-year fixed rate, 30-year fixed rate, and 3, 5, or 7-year adjustable rates. The choices available to you will ultimately depend on your specific qualifications, but J.G. Wentworth will work to give you as many options as possible, while offering low mortgage rates.

Benefits of FHA Loans 

There are a handful of ways that you stand to benefit from financing a mortgage using a loan from the Federal Housing Administration. 

No Large Down Payment Required

Depending on your credit, FHA loans can facilitate down payments as low as 3.5% — much lower than the typical requirement for conventional loans. This reduced down payment plays a large part in why many homebuyers inquire about FHA loans. Since there is less money required up front, the affordability of a home mortgage becomes a reality for prospective homebuyers that may have been renting for the majority of their lives. 

Helpful to First-Time Buyers

Many younger prospective homeowners haven’t had time to save up significant funds, or they might not yet have their dream job, making an FHA loan a popular choice as a first-time homebuyer mortgage. This is a result of the reduced down payment, but also comes from the fact that FHA loans have flexible credit requirements. Even if you have no credit history whatsoever, as is the case with many first-time buyers, there is a chance you could qualify for an FHA loan.

Can Help You Fund Renovations

FHA 203(k) loans are a specific type of mortgage loan backed by the Federal Housing Administration that allow you to borrow extra funds for home repairs or renovations. The FHA 203(k) program allows you to borrow enough for home improvement and home purchase in a single loan, saving you money. These types of renovation loans are held to the same standard as traditional FHA loans, only requiring a down payment of 3.5% in many cases. If you are a first-time buyer looking to purchase a home that requires major or minor renovations, an FHA 203(k) loan could be the perfect mortgage to fit your needs. 

FHA Loan Qualifications

While FHA loans are meant to give first-time homebuyers with less-than-perfect credit or no credit at all an opportunity to afford a mortgage, there are some baseline requirements for approval. 

Credit Requirements

  • If you have a credit score between 500 and 579, you can qualify for an FHA loan with a 10% down payment, or 90% loan-to-value ratio.
  • If you have a credit score of 580 or higher, you can qualify for an FHA loan with a minimum down payment of 3.5%, or 96.5% loan-to-value ratio.

PMI Payment

As a result of the incredibly low down payment associated with FHA loans, there is a requirement for you to pay personal mortgage insurance. There are two parts to the mortgage insurance required with FHA loans.

Upfront Mortgage Premium

When you receive your loan, an upfront mortgage premium will be required. This payment is 1.75% of the total loan amount, and can be rolled into the loan amount, adding a few dollars to each monthly payment. 

Annual Mortgage Premium

In most cases, you will be required to pay an annual mortgage insurance premium that varies based on the loan term, amount, and LTV ratio. If you pay down your mortgage to 80% LTV or less, you have the ability to refinance, making PMI payments no longer necessary. 

Appraisal

To qualify for an FHA loan, you will need to have an FHA-approved appraiser redetermine the value of your home so that your loan-to-value ratio is accurate and up-to-date. 

Get a Free Quote Today

As a nationally-leading direct lender, J.G. Wentworth can assist you in financing your first home through an FHA mortgage loan. We streamline our application process and provide resources such as our mortgage cost estimator to make sure that your path to finding the right home mortgage is as easy as possible. Contact one of our knowledgeable loan specialists to learn more about our low mortgage rates and receive your free, no-obligation quote.

How do I get started?

J.G. Wentworth offers a wide variety of loan programs with low rates and no points and no hidden fees.  To get started, you can call us or let us contact you by completing a short form.  You can also get a rate quote in seconds with no personal information required. We look forward to working with you.