Ready to buy a new house and wondering how the process can be easier? There are schemes for first-time homebuyers to make it easier and smoother.
An easy way to get a mortgage is through the Federal Housing Administration. The best part about this loan program is that you do not need a perfect credit score and only need a 3.5% down payment to make use of this procedure.
This article will give you the best FHA lenders you can use to purchase your dream house.
1. Rocket Mortgage
Formerly known as “Quicken Loans,” Rocket Mortgage is one of the best in the market for loans for mortgages.
If you are looking for an FHA lender with amazing customer service, digital experience, and good mortgage rates, then Rocket mortgage is a good option for you.
They have an amazing digital presence as you can begin your mortgage process online and can even edit your pre-approval letter.
They however don’t offer home equity loans or lines of credit and also their Lender fees are on the high side and may not be affordable.
2. Lending Tree
LendingTree is an Online FHA marketplace that provides a platform where you can digitally submit all your information and find out what you need to carry out a successful loan. You can borrow as much as $50, 000 from LendingTree.
As soon as you fill out the form and indicate that you are there for an FHA loan, your request is answered only minutes after applying and you will see as many as four long offers.
You can pick the one that works best for you and find out what to expect from it.
One thing you may be uncomfortable with is that they collect your personal information.
Usually, you only need to provide your city and state for a mortgage quote but LendingTree collects your exact address, birth date, income, and other information.
3. New American Funding
If you are looking for an FHA lender with a variety of options, then New American Funding (NAF) is the best option for you.
They offer loan types like conventional, FHA, VA, renovation loans, adjustable-rate, fixed-rate, jumbo, refinance, USDA cash-out refinance, I CAN, and reverse mortgages.
New American Funding’s FHA loan offers have more flexible requirements than the traditional loan.
With New American Funding, you can be qualified for an FHA loan with a credit score of 580 and take advantage of a minimum down payment of just 3.5% of the property’s total price.
Unfortunately, New American Funding isn’t available in New York and Hawaii, but if this isn’t a bother for you, then consider this a great option.
4. Citibank Mortgage
Citibank has a mortgage service that is easy, affordable, and gives you access to loans from a renowned bank like this.
You don’t have to worry about location as Citibank is licensed to work in all 50 U.S. states.
They also provide both fixed-rate and adjustable mortgages for you to choose from.
The fixed-rate mortgage never changes throughout the entire plan of your mortgage and so you can rest assured that your payment at the beginning of your mortgage will be the same at the end.
With an adjustable mortgage, this works best if you are looking for a way to save money as it can be readjusted over time, as long as you pick the length of time you want.
5. Carrington Mortgage Services
One reason why this FHA lender stands out is that they are willing to lend to people with credit scores as low as 500.
So if you have been having difficulties taking out a conventional mortgage due to your credit score, then Carrington Mortgage services are the right place to go.
While they also do conventional loans, Carrington Mortgage Services specializes in government-backed loans such as FHA, VA, and USDA mortgages. They do not offer adjustable loans, only fixed-rate mortgages so your interest rate won’t be changing.
However, you’ll have to talk to a loan officer just to receive a preapproval or finish a mortgage application
6. LoanDepot Mortgage
With LoanDepot you won’t be influenced by any loan officer as there is no incentive for loan officers to recommend one loan over the other.
By doing this, you solely make decisions that benefit you.
With LoanDepot, you need a credit score of at least 620 and they have an origination fee between 1% to 5%. If your credit score isn’t up to the average, you may be charged a high price.
However, their mortgage rates aren’t available online and you will have to speak to a loan officer to have access to them.
7. U.S Bank Mortgage
You can apply for an FHA loan from any state in the US and can also take advantage of the in-office assistance available in 25 states.
You can conclude the bulk of the mortgage process online and can meet with any of their loan officers if you want to.
You can track your loan progress on the internet and they offer a large range of conventional and government loans.
One major thing to take note of is that for a U.S bank mortgage, you can qualify for an FHA loan with a minimum credit score of 580. You may have to pay a higher interest rate as well as a larger down payment.
Bottom Line
Now that you have these options as your possible FHA lenders, you can do some research on your own and look at the total cost of the loan and what will benefit you.
So carefully consider these mortgage lenders and check whether you qualify for a loan and which will be to your advantage.