FHA Loans

FHA (Federal Housing Administration) / HUD (Housing and Urban Development)

We will help you get into your dream home because we offer a full array of mortgage products to fit your needs. This section is here to help you understand the FHA mortgage product. An FHA loan is a mortgage backed and secured by a department of the Federal Government. The loan term FHA stands for Federal Housing Administration. You may have also heard the abbreviation HUD. The abbreviation HUD stands for the Department of Housing and Urban Development. An FHA loan is a great and very popular mortgage product that is available with as little as a 3.5% down payment. You would really want to take advantage of FHA’s ability to lend with your low down payment of 3.5%. It really does not pay to put a large down payment on a home and still obtain FHA financing. There will still be mortgage insurance on an FHA loan even if you were to put more than a 20% down payment. As you can see, you might as well go with the low down payment option when using FHA financing. Unlike conventional loans, you will have to do a refinance to remove the mortgage insurance on an FHA loan.

  • Down payment as low as 3.5%

  • Low, fixed interest rates

  • Easier guidelines

  • Allows co-borrower flexibility

  • Accepts non-occupying co-borrowers

FHA Requirements

The minimum credit score needed in order to obtain an FHA loan is 580. There are three credit bureaus that are considered when buying a home. The three credit bureaus are Equifax, Experian, and TransUnion. Each of these bureaus will give their own credit score (risk rating) for you. Sometimes, the credit bureaus will generate the same score only by coincidence, but most of the time you will see three different scores. The highest credit score given by any of the three bureaus is disregarded, the lowest credit score is then disregarded, and you are left with your middle credit score. The middle credit score is what is utilized to determine your eligibility and several other factors while obtaining a home loan. The property types allowed for FHA financing are single family homes, townhomes, villas, duplex(2 units), triplex (3 units), quadplex (4 units), and very few condos. Condos must already be FHA approved in order to obtain FHA financing. You are able to live in one of the multi unit homes (duplex, triplex, or quadplex) and have the rental income to be received on the other units count towards your income to help qualify. Income also needs to be verified while obtaining a conventional mortgage. If you are self-employed, we will review your two year most recent personal and business (if applicable) tax returns. If you are a wage-earner, someone that obtains a W2 at the end of the year, we will review your previous two year W2 forms along with a current paystub. Don’t worry – if your previous income is significantly lower than your current income, we can use your current, higher income just as long as it is justified (increase in pay or a pay raise, promotion, working overtime hours, etc.). If you are retired, we would just need proof of your retirement income (Social Security, pension, etc.). We will also need to verify assets (bank statements) in order to obtain a conventional loan. Again, don’t worry – your funds to close can come as a gift just as long as it comes from an acceptable source (ie no cash money, unverifiable cash, etc.). Gift funds have to be verified but they are allowed.

FHA Quick Facts

Minimum Score 580
Maximum Debt Ratio 57%
Minimum Down Payment 3.5%
Pre-Payment Penalty No
Closing Cost Assistance Yes

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Toll Free: 1-888-601-8344


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What our clients say about their experience.

Don’t take our word for it. Read what our customers have to say about AAA Capital Funding

Buying a home in the U.S. can be challenging when you are a foreigner not familiar with the process. In addition my house was a short sale which is a challenge in itself. AAA Capital were truly professional and dedicated to making this work out. I enjoyed both knowledgeable and courteous service. I highly recommend AAA for your next mortgage.

K. Persen

I think AAA Capital Funding, Inc is a great company. They answered every phone call an tried to answer any questions I had. My experience was great and Myself and my Husband love our lovely new home thanks to you all. Thanks so much I know you should of had a personal hotline just for me because I called almost everyday and maybe 3 to 4 times a day , but each time you answer the phone and my question. Love the AAA staff!!!!!

D. Cunningham

Am Glad that I chose AAA capital funding for my Mortgage need , they help me out with the closing and with a really low interest rate way lower that I have seen. I want to thank them with all the help in the process I recommend them to anybody that is trying to buy a house..

F. Robles

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