An FHA loan is a mortgage loan founded and moderated by The Federal Housing Administration (FHA). This administration is responsible to make sure that the quality and, safety standards of the construction projects in America are up to the mark. They also protect the home buyers by keeping them informed of scams and pitfalls present in the real estate market.
Only an FHA-approved lender can provide you loan to buy a house. Here are the best lenders for FHA loans.
QuickenLoans is an FHA-approved lender and is one of the leaders in the mortgage loans sector. QuickenLoans lends you an FHA loan even with a bad credit history or financial difficulties in the past. Just because your previous business didn’t do well or you got a bad deal on your last purchased/sold house doesn’t mean you can’t apply for a loan again.
Moreover, if you want personalized advice on whether an FHA loan is right for you or not, you can contact the support team of QuickenLoans. They will help you out will all your queries.
2) Rocket Mortgage
Rocket Mortgage by QuickenLoans is America’s largest mortgage lender. Rocket Mortgage has a fantastic mobile app that provides an accurate estimate of what kind of house you will be able to afford. It asks for some basic details like your income, age, and occupation to determine the amount you will be comfortable paying back each month.
To get started, you first have to create an account and then link your bank account with the Rocket Mortgage app. The app pulls your financial statements from your bank database and uses it to suggest the best plan as per your financial situation. Later, they check your credit history in the final step and you are ready to step into your new house.
3) Bank Of America
Bank of America has been one of the major finance companies since last two decades. They have over 500 branches and thousands of ATM’s in the United States. It’s FHA mortgage loan has down payment of a mere 3 percent. However, this plan is not for anyone who has a FICO score of less than 600.
4) Navy Federal Credit Union
Navy Federal Credit Union began serving the families of military personnel in 1993 and since have extensively grown their business. It has over 8 million nationwide. It is the most preferred lender by military professional like the Marine Corps, Navy and Coast Guard. They provide options to pay back the mortgage either in a 15 or 30-year term. Interests rates go slightly higher with a longer payment term(From 3,125 to 3.250% in this example).
5) New American Funding
New American Funding is a California based finance company. They provide excellent customer service and support. They a bit lenient with the applicant’s credit history and allow people with a FICO score above 580.
They are a lot more flexible when it comes to loan options. New American Funding provides plans like FHA Fixed Rate Mortgage, FHA Adjustable Rate Mortgages and FHA Streamline Refinance Loans.
An FHA loan seems great for someone with a good credit score and a stable income source. But there are some pitfalls that you may need to consider before digging further into the several mortgage plans under them. FHA loan borrowers must have a Mortgage Insurance Premium. Also, you are required to be a resident of the house you have chosen to buy. So, make sure these two requirements are met.