FHA Loans
FHA loans are a popular option for first-time homebuyers and homeowners looking for flexible refinancing. Backed by the Federal Housing Administration, these loans are designed to make homeownership more accessible with lower down payment requirements, flexible credit guidelines, and competitive rates.
A Quick Look at Some FHA Loan Benefits
- Down payments as low as 3.5%
- Flexible credit score requirements
- Competitive interest rates
- Available for purchase or refinance
- Streamlined process for qualifying FHA homeowners
FHA Loan Options with Watermark
FHA Purchase Loan
An FHA purchase loan can help you buy a home with a low down payment and easier qualification compared to conventional mortgages. This option is especially helpful for first-time buyers or those with limited savings.
- Down payment as low as 3.5%
- Gift funds allowed from family members
- Seller can contribute to closing costs
- Fixed and adjustable-rate options available
FHA Streamline Refinance
If you already have an FHA loan, an FHA Streamline may be a great option for you, which features less paperwork and an easier process. Other benefits include:
- No income verification in many cases
- No home appraisal required in most cases
- Lower rates and monthly payments
- Faster, simplified approval process
FHA Cash-Out Refinance
Tap into your home’s equity to pay off high-interest credit cards, make home improvements, or cover major expenses. With an FHA cash-out refinance, you can access up to 80% of your home’s equity.
- Pay off high-interest debt and lower your overall monthly expenses
- Fund home renovations or an addition
- Consolidate multiple loans into one single monthly payment
- Access up to 80% of your home’s equity
FHA Loan Requirements
Apply now and our seasoned mortgage bankers will answer any questions you may have and determine whether you qualify for one of our FHA loan programs. Below are some basic requirements:
- Minimum credit score typically 580 (with 3.5% down)
- Steady income and employment history
- Property must be your primary residence
- Debt-to-income ratio typically below 43%
- FHA mortgage insurance required (MIP)
FHA Loan FAQs
An FHA loan is a government-backed mortgage designed to help borrowers with lower credit or smaller down payments buy or refinance a home.
In most cases, MIP remains for the life of the loan. To remove it, many homeowners refinance into a conventional loan once they’ve built enough equity.
FHA loans are available with a credit score as low as 500. With 580 or higher, you may qualify with just 3.5% down.
No, FHA loans are only available for primary residences.
Typically up to 80% of your home’s value, depending on qualifications.
Get Started with a Watermark FHA Loan Today
At Watermark Home Loans, we’ve been helping homeowners since 2006. Whether you’re buying your first home, refinancing to lower your rate, or tapping into equity to pay off debt or improve your home, our team can guide you through every step of the FHA loan process.
Questions? Call us at 800-896-9374
FHA loan terms, requirements, and eligibility vary by borrower. Interest rates, APRs, and maximum loan amounts are subject to change. Watermark Home Loans is an Equal Housing Lender.