FHA Home Loans

Are you looking for an FHA loan in North Carolina, South Carolina, or Florida? 1st Advantage Mortgage offers FHA loans for qualified home buyers.

FHA loans, which are backed by the Federal Housing Administration (FHA), may help qualify for a home if you do not meet other requirements. They’re ideal for individuals and families with low, moderate, and high income and less-than-perfect credit scores.

What Is An FHA Loan?

An FHA loan is a type of home loan designed to help borrowers who may not qualify for a traditional or Conventional Home Loan to afford real estate.

FHA loans are backed by the Federal Housing Administration, which makes them less risky for mortgage lenders to offer and allows for lower credit score requirements and down payment minimums. Because of their more lenient credit score and minimum down payment requirements, FHA loans make it easier for individuals and families without high incomes to buy a home.

FHA Loan Requirements For Home Buyers

FHA loans in North Carolina, South Carolina, & Florida are available to buyers as long as they meet FHA loan requirements. FHA loan requirements include:

A credit score of at least 580. However, if your score is between 500 and 579, you may still be eligible for an FHA loan if you make a down payment of at least 10% of the home’s purchase price.
Borrowing no more than 96.5% of the home’s value through the loan, meaning you need to have at least 3.5% of the sale price of the home as a down payment.
Choosing a home loan with a 15-year or 30-year term.
Purchasing mortgage insurance, paying 1.75% upfront and 0.45% to 1.05% annually in premiums. This can be rolled into the loan rather than paying out of pocket.
A debt-to-income ratio less than 57% in some circumstances.
A housing ratio of 31% or less.

As an FHA lender in North Carolina, South Carolina, & Florida, we will provide you with all the information you need and can help determine if you qualify for an FHA loan.

Not sure if you qualify? Contact us today to talk with one of our friendly Mortgage Experts.

Income Requirements For FHA Loans

There’s a common misconception that FHA loan requirements include income restrictions. While FHA income guidelines can be confusing, FHA loans are available to those who have any type of income. There are no minimum or maximum income requirements.

Income confusion may arise from debt-to-income ratio requirements, which is used to make sure you can afford the loan. Your debt-to-income ratio is the balance between the amount of debt payments you have to make per month compared to how much income you have every month.

Currently, FHA loan requirements state that your debt-to-income ratio cannot be more than 57% with compensating factors. Also, the housing ratio cannot be more than 31%. This includes all principle, interest, taxes, insurance, HOA dues, and PMI you pay.

FHA Loan Or Conventional Loan: Which One Is Right For You?

FHA loans are commonly compared to Conventional Home Loans to determine which will best fit your situation.

When you meet with your Mortgage Expert at 1st Advantage Mortgage, we’ll look at various types of loans available to you. We’ll help you compare FHA loans to conventional loans as well as others that are applicable in your situation. Our Mortgage Experts are experienced and will provide in-depth information, but as you’re researching loans yourself, here are a few differences to keep in mind:

The minimum credit score for an FHA loan is 500. For a conventional loan, it is 620.
Down payments for FHA loans are 3.5%, at least. For conventional loans, it is typically 3% to 20%, depending on the lender.
Loan terms for FHA loans are 15 or 30 years, while conventional loans offer 10-, 15-, 20-, and 30-year loans.
You have to purchase mortgage insurance with FHA loans, but not with most conventional loans.

Benefits & Disadvantages of FHA Loans

There are several benefits to FHA loans. They have lower credit score requirements, lower down payment requirements, and their overall qualifications and standards are easier for more individuals to meet. Conventional loan terms are set by private mortgage lenders. That means they tend to be harder to achieve.

However, FHA loans do require mortgage insurance. This is an added cost to your loan purchase and should factor into your monthly payment.

An FHA loan may not be right for everyone, especially those with a high credit score and a sizable down payment.

Work With 1st Advantage Mortgage For FHA Loans In NC, SC, & FL

1st Advantage Mortgage offers FHA loans in NC, SC, & FL. When you apply for an FHA loan with us, our team will go to work to help you find the best rates available to you. We’ll discuss each type of FHA loan, what the qualifications are, and help you understand the options available based on your unique situation.

When you apply, we can give you an idea of how much of a home loan you qualify for, as well, so you have a better idea of just how much house you can afford. If you already have a home with a specific purchase price in mind, our team can use an FHA loan mortgage calculator to provide insight into what your estimated monthly payment will be.

But most importantly, applying for an FHA loan from 1st Advantage Mortgage means you’ll experience a easier mortgage process with the best support available.

The 1st Advantage Mortgage Process For FHA Loans

Our Mortgage Experts will work with you to pre-qualify you for these loans, going to bat for you as your advocate with the underwriters who review your application. We’ll work closely with you to ensure you meet all FHA loan requirements, including completing the necessary application and all required paperwork.

And if you don’t qualify for an FHA loan? We’ll tell you immediately and work with you to find another option that meets your needs.

Let's Get Started

Apply For A FHA Home Loan With 1st Advantage Mortgage Today

If you’d like to discuss your options further or have any questions about our service to speak with one of our friendly Mortgage Experts.

Ready to get started? Great! Click “Apply Now” below to begin your application

Frequently Asked Questions

FHA Home Loan FAQs

If you have questions about securing FHA Home Loan in NC, SC, or FL, our team is here to help you. Our Mortgage Experts are happy to answer all of your questions and provide specific info to you. Here are some common questions about FHA Loans:

What is an FHA loan?

An FHA loan is a type of mortgage loan³ that allows people to buy a home with federal loan backing. That means, if you default on the home loan, the lender is able to file a claim for any lost principal paid to you.

While this does not help you, it does help to reduce the amount of risk you are to lenders. In turn, that reduces what you have to pay in interest to your lender. There are several types of FHA loans as well. If you’d like more information on which types are available to you,

What does FHA stand for?

FHA is an abbreviation for Federal Housing Administration, a branch of the US Department of Housing and Urban Development.

Are FHA Loans Bad?

No. FHA loans are a great option for many individuals and families who want to buy a home. While FHA loan rules can sometimes make them seem hard to obtain, they are actually very accessible to many people. They are also an excellent way to help you to secure a home when you otherwise would not qualify for a home loan.

Who can qualify for an FHA loan?

FHA loan qualification is easier to obtain than most people realize. You need to meet the FICO®* score guidelines noted (between 500 and 579 with a 10% down payment or have a score over 580). You also need to have at least 3.5% down, verifiable employment history over the last two years, and meet the required debt-to-income ratio of up to 57% with compensating factors.

Legal information

² No -Down Payment Disclaimer: Closing costs and fees may still apply

³ Lending Disclaimer: Mortgage rates are subject to change and depend on the borrower(s) qualification. APR rate(s) quoted are based upon a (loan amount), (loan term, including whether fixed or ARM) year.

⁴ Refinancing Disclaimer: When refinancing your mortgage , you can typically reduce your monthly payment amount. However, your total finance charges may be greater over the life of your loan. Your 1st Advantage Mortgage loan professional will provide you with a comprehensive refinance comparison analysis to determine your total life loan savings.

⁵ VA Mortgage Disclaimer: VA home loan purchases offer options for a 0% down payment, no private mortgage insurance requirements, and competitive interest rates with specific qualification requirements. VA Interest Rate Reduction Loans (IRRRL) are exclusively for veterans with current VA loans – current loan rate restrictions apply, and limits to recoupment of costs and fees apply. VA cash-out refinances are available for veterans with or without current VA loans. Policies and guidelines may vary and are subject to individual borrower(s) qualifications. Program and lender overlays apply.

⁶ Down Payment Assistance Disclaimer: First-lien interest rates may be higher when using a DPA.

⁷ Pre-Approval Disclaimer: Pre-approvals are granted to clients who meet qualifying approval criteria and specific loan requirements at the time of application. Results may vary.

General Disclaimer: The content on this page has not been approved, reviewed, sponsored, or endorsed by any department or government agency.

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North Carolina Mortgage Broker License: B-217173

Florida Mortgage Broker License: MBR6689