What Is an FHA Home Loan?
An FHA home loan is a mortgage insured by the Federal Housing Administration that can be a great option for buyers who wish to put down less than 20%. FHA loans also have less stringent guidelines than some other loan products for income and debt requirements, which makes it a popular mortgage for first-time homebuyers.
Since 1934, the FHA has provided insurance to lenders in order to allow a wider range of Americans to buy and finance homes. The program was started during the Great Depression, when the increase in failing banks caused a dramatic decrease in homeownership. While the program has undergone many changes over the year, including raising loan limits, the FHA has been successful in making homeownership a reality for a greater portion of the population. Today, the FHA insures about 15% of all new mortgages.
Why Choose PennyMac as Your FHA Mortgage Lender?
As a leading national mortgage lender, PennyMac loan officers have earned a reputation for focusing on the unique needs of every homebuyer they work with. Whether customers are first-time homebuyers interested in an FHA mortgage or are looking to refinance their existing FHA loan, our specialists are equipped to help borrowers through each and every step of the FHA mortgage process.
PennyMac is dedicated to fulfilling the dream of homeownership for everyone interested in taking the next step on a new property. We’re working every day to improve the experience of finding the right home loan for your unique needs and offering competitive rates on a wide range of products. Interested to learn more about what PennyMac can do for you? Get your own customized quote today.
Frequently Asked FHA Streamline Questions
What Are the Credit and Income Requirements for an FHA Loan?
PennyMac typically requires borrowers to have a credit score of 640 or higher, and a debt-to-income level of about 55% or less.
What Kind of Properties Can I Buy with an FHA Mortgage?
FHA mortgages are eligible on owner-occupied, single family residences. This can include a condo, but it cannot be used to purchase a second home or an investment property.