FHA Loans
What are FHA Loans?
FHA loans are insured by the Federal Housing Administration, and are not limited to First Time Home Buyers. The program requires 3.5% down payment and typically offers an interest rate that’s lower than a Conventional loan. A borrower does pay a mortgage insurance premium, but that is sometimes offset by the lower interest rate. The program has slightly relaxed credit guidelines, which can help more borrowers qualify for a home loan. The program itself doesn’t have a minimum credit score requirement, but some lenders have an overlay and require a 640 or higher credit score.
We are proud to have an in-house underwriter on staff to make FHA loans efficient and competitive. FHA loans should not take longer for closing, though some lending institutions take longer because they do not have an in-house underwriter (or they simply aren’t as well versed with the program guidelines). You can feel confident when Residential Mortgage Network is the lender for your FHA loan!
Why would I want to use the FHA Loan program? What are the benefits?
An FHA loan offers several advantages that make homeownership more attainable, and it’s not JUST for first-time home-buyers or those with lower credit. It can be a great option for any buyer. Sometimes, it simply works out to a lower overall monthly payment for our borrowers to use an FHA loan over a Conventional loan. It also typically has a .5% lower interest rate compared to a Conventional loan.
With lower down payment requirements, flexible credit guidelines, and competitive interest rates, FHA financing can open doors that other loan programs may not.
Because of their accessibility and affordability, FHA loans are often the ideal choice for buyers who want a smoother path to qualifying and more room to grow financially.
FHA Loan Quick Facts
What credit score do I need for an FHA loan?
Most buyers qualify with a credit score of 640 or higher for the 3.5% minimum down payment, but there is some flexibility.
How much do I need for a down payment?
FHA loans require as little as 3.5% down, making them one of the most accessible loan options for Iowa homebuyers.
Are FHA loans only for first-time homebuyers?
No. While they’re popular with first-time buyers, any qualifying borrower can use an FHA loan.
Do I have to live in the home?
Yes. FHA loans are for primary residences only—you must live in the home you finance.
What types of properties qualify?
Typically just Single-family homes, some other properties MAY be eligible if they meet FHA safety and appraisal standards. Not eligible for condos.
FHA Streamline Refinance
An FHA Streamline Refinance is one of the fastest and simplest ways for current FHA homeowners to lower their monthly payment. With reduced documentation, no required appraisal in many cases, and minimal underwriting, this program is designed to make refinancing as smooth as possible. Borrowers can take advantage of lower interest rates, shorten their loan term, or switch from an adjustable-rate mortgage to a fixed-rate loan with ease. Because the process is streamlined, you can often refinance quickly and without the stress of gathering extensive financial documents. We make this already-efficient process even easier by guiding you through every step and helping you secure the best possible terms.
Cash-Out Refinance
An FHA Cash-Out Refinance allows homeowners to tap into their home’s equity and receive cash that can be used for major expenses—such as home improvements, debt consolidation, education costs, or other financial goals. Unlike the Streamline option, this program does require a full credit check, appraisal, and standard documentation, but it offers borrowers the ability to access more equity than many conventional loan programs. With flexible credit guidelines and competitive rates, an FHA Cash-Out Refinance can be a powerful tool for improving your long-term financial position. RMN helps you understand how much equity you can access and ensures the process is straightforward and transparent from start to finish.
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