FHA Loan

Don’t let credit issues stop you from purchasing your Dream Home. At South Shore Mortgage, we are an Approved Government Lender. FHA might be just what you need. Your down payment can be as low as 3.5%* of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties. We are a leading provider of FHA Loans in Lindenhurst, Babylon, Copiague as well as the whole state of NY.

Benefits of an FHA Loan

  • Home For Sale Sign in Front of Beautiful New HomeDown payments on FHA mortgages start as low as 3.5%* of the purchase price of the home. Conventional mortgages may require larger down payments.
  • Fewer credit restrictions: if you don’t qualify for a conventional loan, an FHA mortgage can be a great alternative. FHA loans have less restrictive down payment and qualification standards than traditional sources of financing.
  • You may qualify for an FHA mortgage with less-than-perfect-credit. Minimum credit scores needed for FHA loans are typically lower than those on conventional mortgages.
  • Current FHA mortgage holders may qualify for an FHA Streamline refinance with no new home appraisal or income verification.
  • There are no-closing-cost options for borrowers looking for an FHA mortgage.

How to Qualify for an FHA Loan

  • Make sure you have verifiable income:
    • Paystubs, W2’s and/or tax returns with a history of working for 2 years.  As long as you have a 2 year history in the same line of work FHA will allow a shorter work history at your current job.
  • Must be able to afford payment and all other debts
    • Your mortgage payment must not exceed 46 percent of your income
    • Your new mortgage payment plus all the payments for all other debt must not exceed 56 percent of your income
  • Have an established credit history
    • You need at least 2-3 lines of credit.  (which simply put would mean 3  lines of credit or loans)
  • Credit Score of 580 or Higher
    • FHA allows for a lower credit score with no major issues, ie. foreclosure or recent bankruptcy
  • Down payment of 3.5 %  or higher:
    • If you have a credit score of 580 or higher you are eligible for a down payment as low as 3.5%
    • all FHA loans require Mortgage Insurance upfront and monthly.  These amounts vary based on how much the down payment is.  See below for more specific numbers.
  • The property must also meet certain requirements:
    • Must be a primary residence
    • The property must not have an safety issues (such as exposed wires, missing handrails, peeling paint)and electric and water facilities must be on and functional at time of inspection.

FHA Loan Limits

FHA loan limits vary per state and county click here to find out your county limit.  Fortunately the loan limits are usually high enough for most buyers to purchase the home they want.

Mortgage Insurance Premiums (MIPs)

Upfront Mortgage Insurance (UFMIP) on all Mortgages is now is 1.75% (1.75% of your loan amount)

Any mortgage with a Term greater than 15 years
Loan Amount LTV MIP Duration
≤$625,500 ≤ 90% .80 11 Years
> 90% but ≤ 95% .80 Mortgage Term
> 95% .85 Mortgage Term
> $625,500 ≤ 90% 1.00 11 years
> 90 but ≤ 95% 1.00 Mortgage Term
 > 95% 1.05 Mortgage Term
For any mortgage with a Term Less Than or Equal to 15 year
Loan Amount LTV MIP Duration
≤ $625,500 ≤ 90%  .45 11 Years
> 90%  .70 Mortgage Term
> $625,500 ≤ 78%  .45 11 Years
> 78% but ≤ 90%  .70 11  Years
> 90% .95 Mortgage Term
For Refinance of an existing FHA mortgage on or before May 31, 2009
Loan Amount LTV MIP Duration
 All ≤ 90% .55 11 Years
> 90% .55 Mortgage Term

Apply for an FHA Loan

We make applying for an FHA Loan a simple easy process.

Click here to apply now for an FHA Loan.

You will not need to look any further than South Shore Mortgage,  we can meet all of your FHA mortgage needs.