What is an FHA Loan?

Government insured mortgages

The Federal Housing Administration (FHA) program is designed to promote home ownership. The FHA does not actually make loans; instead, it insures loans against default, allowing lenders to use greater underwriting flexibility and offer lower rates.

FHA loans are ideal for first-time buyers because they help overcome the biggest stumbling block to ownership; the down payment. FHA loans are also beneficial for buyers with less-than-perfect credit.

FHA loans

  • Purchase or refinance your owner occupant home
  • Low down payment
  • No income restrictions
  • Easier qualification than other types of loans
  • Have debt-to-income ratio limits
  • No prepayment penalties
  • May provide more leniency during financial hard times

Is an FHA loan right for you?

There are lots of good reasons to choose an FHA-insured loan, especially if one or more of the following apply to you:

  • You're a first-time homebuyer.
  • You don't have a lot of money to put down on a house.
  • You want to keep your monthly payments as low as possible.
  • You're worried about your monthly payments going up.
  • You're worried about qualifying for a loan.
  • You don't have perfect credit.

If any of these things describe you, then an FHA-insured loan may be right for you.

Contact the USC Credit Union toll free at 1-877-670-5860, Option 5 or email at mortgage@usccreditunion.org for an appointment to determine if you qualify for an FHA loan. If you do, we’ll discuss how much you qualify for, your loan options, and how to make an offer on the property you want. After all, we fund the home ownership dreams for the Trojan Family every day!

Maximum loan limits apply based on county restrictions.

 

Refinancing with an FHA loan

Even with limited equity

If declining housing prices have reduced your equity, you may still be able to refinance with an FHA loan. It allows you to refinance up to *95% of your home’s value

With an FHA refinance, you can:
  • Lower your mortgage payment
  • Avoid foreclosure
  • **Get cash out for bill consolidation or increasing your home’s value
  • FHA refinances are available with fixed or adjustable rates.

*Rate and term refinance up to 95% loan to value
**Cash out restricted to 80% loan to value
Maximum loan limits apply based on county restrictions.

To get started

Contact the USC Credit Union toll free at 1-877-670-5860, Option 5 or email at mortgage@usccreditunion.org for an appointment to determine if you qualify for an FHA loan. If you do, we’ll discuss how much you qualify for, your loan options, and how to make an offer on the property you want. We’re here to make the dream of home ownership come true for the Trojan Family.

Equal Housing Lender. Prices and guidelines are subject to change without notice. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply.

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