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FHA Loans

You really can afford a home. Start here.
a book and coffee cup sitting on a coffee table

Don’t let finances get in the way of living your dream.

The Federal Housing Administration (FHA) insures mortgages with special features like low down payment requirements and lenient qualifying terms. Even if you have a low credit score, you may qualify to buy or refinance with these loans. Maximum loan amounts may apply based on region, but there are no maximum income limits.

Perfect for you if:
  • You have a low credit score.
  • You think you can’t afford the home you want.
  • You don’t have a lot saved for a down payment.

Loan Features

  • Available in a variety of fixed-rate and adjustable-rate loan options.
  • Down payment options as low as 3.5%.
  • May allow you to use a gift or grant for all or a portion of the down payment or closing costs.
  • Lets you add extra features such as a temporary buy down.
  • You typically have to pay upfront and monthly FHA mortgage insurance premiums.

Loan Benefits

  • Requires less cash upfront for your down payment and closing costs.
  • Available for all income levels.
  • Allows a new buyer to take over the loan if you sell your home (subject to loan approval).
  • Allows a co-applicant to help you qualify even if the person doesn’t live in the home.

Considerations

  • FHA loans have the benefit of a low down payment but there are other loan products with the same options.
  • Be certain to ask your home mortgage consultant to help you compare the overall costs of all products, including the monthly and long-term costs and conditions of the required mortgage insurance.
  • You can typically only have one FHA mortgage at a time.
  • In many instances, you may find FHA to be a more expensive financing option and should be considered after thoroughly evaluating all other product options that meet your credit qualifying and financial needs.

Terms

Fixed-Rate

  • Up to 96.5% financing on some loans.
  • Home seller can contribute up to 6% of sales price to help with closing costs and prepaid items for the new homebuyer.
  • 100% of down payment may be provided as a gift by a relative or employer.
  • Up-front mortgage insurance can be financed into the mortgage loan.
  • Cash reserves may not be required for loans under $417,000.
  • Lenient income, debt, and credit qualifications making it easier for more people to qualify.
  • Compensating income factors, such as roommate income, may be considered.
  • May be assumed by a qualified purchaser if home is resold.
  • No penalty for prepaying your loan.

Adjusted Rate

  • Choosing a higher margin allows you to obtain a lower initial rate.
  • For 5-year ARMs, first adjustment occurs 60 to 66 months after the first installment payment is due.
  • Interest rate cannot increase more than 1% per year or more than 5% over the life of the loan.
  • 5/1 ARMS qualify at note rate.
  • May be assumed by a qualified purchaser if home is resold.
  • No penalty for prepaying your loan.

Apply online today

Applying for a First Bank mortgage is fast, easy and secure. Before you begin, have the following information on hand.

Financial Information
  • Income
  • Your total assets
  • Monthly expenses
Property Information
  • Estimated purchase price and down payment amount (if buying)
  • Estimated property value and loan amount (if refinancing)
Work with a local mortgage specialist

Loans are subject to credit approval.

For a $200,000 mortgage loan for a term of:

  • 30 years fixed interest rate of 4.75%, with an APR of 4.906%, the monthly payment would be $1,043.29.
  • 15 years fixed interest rate of 4.125%, with an APR of 4.391%, the monthly payment would be $1,491.94.
  • 5 year adjustable rate* of 4.375%, with an APR of 4.527%, the monthly payment would be $ 998.57.
  • 7 year adjustable rate* of 4.5%, with an APR of 4.653%, the monthly payment would be $1,013.37.
  • 10 year adjustable rate* of 4.625%, with an APR of 6.508%, the monthly payment would be $1,028.28

Based on 20% down payment and 1% Origination Fee. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. These payments are based on recent interest rates and can vary based on individual credit.

*Adjustable interest rates and payments are subject to increase after the initial fixed‑rate period (5 years for a 5/1 ARM, 7 years for a 7/1 ARM and 10 years for a 10/1 ARM).

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