FHA Loans

Columbia FHA Loans

The primary goal of the Federal Housing Administration (FHA) is improve the housing market and protect lenders in the event a borrower was to default on their mortgage. The FHA has grown to become the largest insurer of mortgages in the United States. The Cain Mortgage Team is proud to offer great rates and flexible financing options on Columbia FHA Loans.

A Columbia FHA Loan can be used for a number of different purposes including but not limited to: renovation projects, refinancing, and purchasing a new home. Cash-out refinance options are available to buyers in need of capital for debt consolidation and home repairs. Streamline refinance loans are available to reduce interest on any current loans you have.

Columbia FHA Loans offer relaxed credit requirements and lower down payment options that can make them easier to qualify for. Most buyers can qualify for a Columbia FHA loan with a down payment of 3.5 percent of purchase price and a credit score of 580. If a buyer does not have the savings to cover the down payment, family members are able to gift the money. Since these loans are easier to qualify for, FHA loans are very popular among homebuyers in Columbia South Carolina.

Columbia South Carolina FHA Loan Requirements:

  • Income Requirements: a debt-to-income ratio of 43 is generally required although a higher one could be approved in unique circumstances.
  • Down Payment: A down payment of 3.5 percent is generally required.
  • Credit Score: Typically the minimum credit score required is 580 however buyers with lower scores could potentially qualify.
  • Property Requirements: All properties purchased through the Columbia FHA loan program must meet certain security, safety, and structural integrity requirements.

Do all Brokers/Lenders have the same guidelines with FHA Loans?

The answer to this question is no.  Many companies will require a debt to income ratio of 43% or 45%, but we have the option to go as high as 55%.  This drastically improves the chances for approval for many buyers as well as give the buyer more buying power with a FHA Loan.  Additionally, some companies have a 620 or 640 score requirement but we don’t have that as a standard requirement.  We look at the complete credit profile of the person looking for a FHA Loan and can look at compensating factors, such as job consistency, assets, debt to income ratio and many others to help overcome a weakness in the clients other areas.  So, make sure you talk with someone that doesn’t have rigid guidelines for FHA Loans when shopping for a FHA Loan.

The Cain Mortgage Team is committed to helping out clients with all of their Columbia FHA loan needs. Whether you are purchasing your first home, of looking to refinance your current FHA loan at a lower rate, the Cain Mortgage Team can help.   Although there are many companies that offer FHA Loans, it is always a great idea to shop for your FHA Loan since there is typically a wide disparity between what companies offer.  The Cain Mortgage Team regularly competes with other companies and have seen that most other companies can not compete.  Additionally, the process is significantly smoother for the client when working with a local company that provides one person to work with and is available after normal business hours.   We provide free consultations for FHA Loans and would be happy to talk with you at your convenience!  Don’t settle for anything but the best!  Check out our 100+ 5 Star reviews on various sites and what our previous clients have said about their experience with us! Contact us today at (803) 261-9267 with any questions you may have on Columbia FHA loans or how to get pre-qualified!