FHA Loan Programs

Buying a home is a big deal and you need to be confident in your decision. To buy a home, you need money and you have to apply for a loan. FHA loan program (federal housing administration loan) is a great help if you haven’t qualified for other loan programs. FHA generally offers lower interest rates, lower-income requirements and does not hold as much weight on your credit score compared to other loan programs. Moreover, FHA is generally easier to qualify for; it has lower down payment requirements and cannot exceed statutory loan limits as set by each county. Therefore, FHA loans are federally-backed mortgages designed for people buying a home for the first time.


The eligibility criteria:

here are 6 points you should remember while applying for an FHA loan

  • the credit score should be greater than 580
  • the down payment should be 3.5%
  • the debit/income ratio should be less than 43%
  • no minimum or maximum salary.
  • should have at least two established credit accounts (a credit card and a car loan)
  • the borrower should have had no homeownership in the last three years.

Also, the lender checks the FICO score. The FICO score represents the borrowers’ potential worthiness, which means that it helps to analyze how likely the borrower is to make timely payments on the mortgage. The higher the score, the better borrower’s chances of getting a lower interest rate on its mortgage.

If you meet all the above requirements, you are good to get your loan approved.

5 FHA loan that united mortgage plus offers:

1) 0% down FHA program:

You don’t have to be a first-time homebuyer, and there is no minimum or maximum income requirement. The borrowers who have up to 115% AMI are excusable for two lein. But, the borrowers who have more than 115% AMI are supposed to repay 2 lein. The FICO score should be down to 620 and the 2 liens up to $10,000. In addition, there are no homebuyer classes required and no borrower investment required.

2) FHA elite:

To qualify for an FHA elite loan, the borrower should have a FICO of more than 720. It is used to finance a primary residence of a single-family. The borrowers should have a debt ratio of up to 55%. Also, we take your FHA loan to a new level with industry-leading government rates and pricing. The country loan limit is $175000.

3) VFHA streamline:

UMP’s FHA Streamline program allows you to refinance your FHA loan with no appraisal or AVM. Time is of the essence—stop the shop and use our quick closing process to secure your loan. The borrower should have a FICO of more than 640. The debt ratio should be accepted up to 55% and up to 60 days interest is allowed.


Our aggressive ARM pricing can provide a lower payment for you. It has 5/1 Treasury ARM available. It quickly and easily prices out your loan with Easy Qualifier (EQ) to determine your best scenario. Also, it qualifies at the note rate.


We can close your HUD REOs in as fast as two weeks from submission while allowing holdbacks up to $5,000 for escrow repairs.

Before applying for this loan, you should know its cons too.

The downside of an FHA loan:

  • The lenders often charge higher interest rates.
  • They are not suitable to use for investment properties.
  • FHA loans are less flexible than conventional loans.
  • It is only used to finance a primary residence only.
  • You have to pay lifetime mortgage insurance expenses.

Above it is said that conventional loans are better than FHA loans. One should decide which loan it has to opt for after seeing its credit scores and other eligibility requirements for both loans.


Many first-time homebuyers aren’t aware of all the costs associated with this loan. While opting for a loan, one should remember that one has to pay interest and other costs (e.g., insurance, property tax, etc.). Below is the list of costs one should consider before buying a house.

  • down payment: Down payment is an initial up-front partial payment for the purchase of a house.
  • loan term: It is repaid in regular payments over a set period.
  • interest rate: An interest rate is the amount of interest due per period, as a proportion of the amount the lender provides.
  • principal and interest: Principal” is the amount you are borrowing, and “interest” is the percentage of that amount that you’re charged for the privilege.
  • FHA mortgage insurance: An FHA mortgage insurance premium (MIP) is an additional fee you pay to protect the lender’s financial interests if you default on your FHA loan.
  • Property tax: a tax levied directly on the property.
  • homeowners insurance: it is a type of property insurance that covers a private residence.

•Mortgage escrow: Mortgage escrow accounts are special holding accounts for your property tax payments and homeowners in

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