A Tennessee FHA mortgage or FHA loan allows for the refinance or purchase of a home with a low down payment. These loans are great for the first-time homebuyer.
FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA), which is part of HUD insures the loan, so your lender can offer you a better deal.
Key Benefits:
- Low down payments
- Low closing costs
- Easy credit qualifying
- Rent payments can be used as a credit qualifier
Tennessee FHA home loans are mortgage loans that are insured against default by the Federal Housing Administration (FHA). FHA loans are available for single family and multifamily homes. These home loans allow banks to continuously issue loans without much risk or capital requirements. The FHA doesn't issue loans or set interest rates, it just guarantees against default.
FHA loans allow individuals whom might not qualify for a conventional mortgage obtain a loan, specially first time home buyers. These loans offer low minimum down payments, reasonable credit expectations, and flexible income requirements.
Frequently Asked Questions
Can only first-time home buyers use a FHA loan program?
No. You can use an FHA loan as many times as you desire. The only guideline is that you cannot have more than one outstanding FHA loan with a loan to value of higher than 75%. You can own rental property and purchase your primary residence using FHA financing
Does FHA use a FICO credit score for qualifying?
Yes. FHA does require a minimum fico score to qualify for an FHA mortgage. We strongly encourage you to talk to us even if you think you have bad credit.
Can I streamline refinance my FHA loan at any time?
Yes, you can streamline assuming that you are lowering your monthly payments or converting the loan to a fixed rate.
Can I buy a home with no down payment or get 100% financing using a FHA loan?
Generally an FHA loan requires a minimum down payment of 3.5%. However, there are Grant and Down Payment Assistance Programs available to assist you with your downpayment and allow you to purchase a new home with minimal cash out of pocket
How long after a bankruptcy can I buy a home using FHA financing?
You may purchase a home using FHA financing two years after the date of discharge for a bankruptcy, assuming that you have maintained excellent credit since the discharge
How long after a Foreclosure can I use FHA financing to buy a home?
Two years after the final date of foreclosure you may use FHA financing to buy another home, assuming that your credit since the foreclosure has been re-established.
Can I get rid of of the FHA Mortgage Insurance if I have 20% equity?
Yes. However, the way to remove the FHA mortgage insurance is to refinance the loan to a conventional loan once your loan is equal to 80% or less of the current value.
Do I have to pay off collections accounts before applying for a FHA loan?
It depends on the type of collection. We can discuss this one-on-one to determine what must be paid off or not. In most cases, Judgements should be paid off before applying for a FHA mortgage. You should get pre-qualified by one of our mortgage professionals before paying any items off.
Can I get a FHA loan if I have a federal tax lien?
You may qualify for a FHA loan even with a Federal tax lien, as long as it has been in a repayment schedule for at least 6 months and all payments have been made on time.
Can I have a co-signer that is not living in the property?
Yes, you may have a co-signer that is not living in the home help you qualify for a mortgage but their rent, mortgage payment, or monthly bills will be used in qualifying. Also, they cannot currently have a FHA loan in their name:
Loan Programs 
