Virginia FHA Loans

Florida, Maryland, and Virginia are serviced by MCS Mortgage. In addition to offering a variety of home loan options – from VA loans to fixed-rate mortgages to adjustable-rate mortgages (ARMs) – MCS Mortgage’s most popular loan program is the FHA home loan.

An FHA loan is one of the easiest to apply for since it’s sponsored by the Federal Housing Administration (FHA), which is part of the US Department of Housing and Urban Development. While it has a lower credit score minimum than most mortgages, it’s also an excellent choice for first-time homebuyers and homebuyers with poor credit, bankruptcy, and other financial hardships.

Though the FHA loan is one of the easiest to qualify for, it still has some requirements.

FHA loans are attractive because they require a smaller down payment than most other loans. For most homebuyers, a down payment of 3.5% is all that is required, but only if they have a credit score of 580 or higher. If your credit score is between 500 and 579, you will usually need to put down 10%. What explains this difference in down payment?

Due to the fact that a down payment is money a homebuyer pays upfront, this reduces the risk for the lender on a few critical points: first, in order to save enough money for a down payment, the buyer needs to develop good budgeting habits. In addition, homebuyers who put their own money into a property are less likely to default on monthly payments. Third, a down payment can limit a lender’s losses if the property has to be resold at a loss if the lender has to foreclose.

In light of the importance of a down payment for a lender, homebuyers with higher credit scores are less likely to default on their monthly payments. As such, they can make a lower down payment. In the case of homebuyers with a lower credit score, they tend to be more high-risk to lenders. To account for the likelihood of defaulting, homebuyers with lower credit scores make slightly higher down payments due to that high-risk factor.

MCS Mortgage Services proudly serves Virginia Counties such as Fairfax Virginia, Catonsville Va, Fairfield County VA, Arlington Va, Loudoun VA, and many more areas.   Another distinctive demand of the authority loan is that each homebuyer United Nations agency applying for this loan is going to be needed to pay a mortgage premium (MIP). this can be as a result of the Federal Housing Administration guaranteeing lenders protection against losses by insuring the authority loan. The insurance on the loan is procured by the homebuyer through the MIP. To find out if the authority loan is correct for you, take care to contact MCS Mortgage at 833-415-LOAN or by email at Hello@MCSMLS.com.