Become a homeowner with an FHA Loan!

Government Loan Programs make
buying home affordable for Americans.

What is an FHA Loan?

The Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development, provides mortgage insurance to lenders to protect them from a borrower who defaults on the loan. With FHA loans, potential home buyers who have a credit score of at least 580, take the advantage of paying the minimum down payment of 3.5%. This makes FHA loans more accessible and affordable than other mortgages. FHA loans are a great option for home buyers who don’t have a significant amount of cash for a down payment or who may have a lower credit score.

The FHA loan is the most popular government-backed home loan in the country. These low down-payment loans are made by qualified lenders and guaranteed by the Federal Housing Administration (FHA).

Interested in
this loan?

At Hawk Mortgage Group, we work with lenders who are FHA-Approved, to get you the lowest mortgage rates possible. Debt to income ratio and credit scores are considered, and Hawk Mortgage will help you navigate this process.

Benefits of FHA Loans

How do I know if I have the right type of credit to rate an FHA loan?

FHA loans in 2021 require just a 3.5% down payment for anyone applying that has a 580-credit score or higher. For homebuyers with less-than-perfect credit, FHA loans offer additional significant benefits. The government backing means average FHA interest rates are typically lower than average rates for conventional mortgages.†

What is FHA Mortgage Insurance (MIP)?

An FHA mortgage insurance premium (MIP) is an additional fee you pay to protect the lender’s monetary interests in case you default on your FHA loan. FHA borrowers are required to pay two mortgage insurance premiums: one upfront at closing, and another annually for as long as you repay the loan, in most cases. Remember though, when paying at least 20 percent down payment, this requirement can often be avoided altogether.

How To Apply for an FHA Loan Online

Figure out how much you can afford

Before searching for a home and mortgage, first think about how much you can afford to put toward your down payment and monthly payments. As an example, let us say you are purchasing a home at the average national sale price ($383,000 in Q1 2021), with the standard down payment for a conventional loan (20%), average 30-year fixed-rate mortgage (3.13% in April 2021) and 5% closing costs (these vary from 2-6%). In this scenario, you would be looking at an upfront payment of $92,000 plus monthly payments of $1,313.

The simplest way of figuring out how much you can afford is to take your monthly household income and subtract your household monthly expenses. If you currently rent, keep in mind that the monthly payments on your mortgage will replace your rent payments. Still, you may also be subject to other new expenses such as homeowners’ insurance, home maintenance costs, property taxes, and private mortgage insurance (usually required if you make a down payment below 20%).

How do I qualify for an FHA Loan?

FHA real estate is not a unicorn. Getting pre-approved means that a lender has reviewed your initial application and conditionally agreed to offer you a loan up to a certain amount. Having a pre-approval letter from a lender can be an advantage when searching for a home as it shows potential sellers that you are serious. It also means you will not have to worry about the possibility of not being approved for a mortgage after closing on a home.

To apply for pre-approval at Hawk Mortgage, you will need to provide personal ID, social security number, proof of income, proof of employment (or alternative documentation if you are a sole proprietor or business owner), and proof of assets.

The most key factors in getting pre-approved with Hawk Mortgage are:

This historic home loan program continues to open the door to homeownership for millions of Americans who might struggle to secure conventional financing.