September 13th, 2018


Buying the home of your dreams is one of the most exciting and rewarding things that you can do. It's also likely to be the biggest investment of your life. It can also be incredibly confusing for some home buyers who are trying to find the right loan. Shopping for your home is hard enough. Shopping for a mortgage loan can be more complex and far less fun.

FHA Loan Basics

For many, shopping for their dream home the FHA loan is the best option available. It offers a great path to home ownership and is more attainable than ever before. Learning a few facts about it is important. FHA loans are backed by the Federal Housing Administration. This guarantee from the government allows lenders to extend loans with less stringent qualifications and with better terms. In turn, the FHA borrowers will pay for mortgage insurance that protects the lender from a loss.

Top Things To Know

Here's a look at qualification requirements and other info worth knowing.

The Minimum Down Payment Is Lower

Unlike traditional loans that require as much as 20% down, FHA loans require only that you have 3.5% of the home's total purchase price as a down payment.

Your Credit Doesn't Have To Be Perfect

In fact, your credit score can be as low as 580 in order to secure the 3.5% down payment option. You can actually secure an FHA loan with a score as low as 500, but your down payment must be 10% if this is the case.

Your Lender Must Be Approved

The FHA doesn't actually provide the loans. They only secure them. As such, you'll have to get your FHA loan directly through a lender that offers FHA loans and that has been approved by the FHA.

Closing Costs Could Be Included

FHA loans do allow you to include closing costs in the loan total. However, in these instances, you may end up paying a higher interest rate.

Home Repairs Can Be Included As Well

The FHA has a special program that allows you to take out a 203K loan. This includes money that can be used to repair and remodel a home that is being purchased.

Mortgage Insurance Is Required

If you pay less than 20% down on your home, you'll have to pay mortgage insurance including an Upfront Premium paid when you get the loan and an annual premium that is paid over the course of the loan.

Loan Limits Change

Every year the FHA adjusts the maximum and minimum loan amounts. Currently, FHA loans can be between $294,515 and $679,650.

Getting Your Loan

Getting the perfect loan isn't always easy, but local experts exist to help. 

Deb Klein Team

3115 South Price, Suite 115, Chandler, AZ 85248 480-550-0211
The Deb Klein Team is the preferred home mortgage consultants located in Chandler, AZ. They are dedicated to finding great rates and loan options for their customers while providing fast turn times. The Deb Klein team has helped over 2000 customers achieve their dream of homeownership, and they are ready to assist you with your home financing.

Kyle Bambu

Deb and her team are fantastic at what they do! I worked primarily with Jake Mullins who knew the inside and out of the loan process. He was very accommodating and worked with me despite not knowing if he would get a deal or not. I originally had planned to go with a different lender, but in the end, Jake was able to get me a much better offer while also providing MUCH better service. He kept me informed throughout the entire process and got personally involved when issues arose so that he could keep my loan on track for closing. Highly recommend whether you are a veteran in RE or a first time home buyer!


Christopher Bey

Primary Residential Mortgage has repeatedly gone above and beyond what I could ask for in a lending company. I have worked with Lending Partner Jake out of PMI on multiple transactions and he has always been my go to contact for lending inquiries and requests. His knowledge, relentless work ethic, and desire to provide the best financial position for my clients have made me look like a super star for my clients. I was able to call Jake any day at any time and get immediate results, information, and direction on what was needed to be done. I will continue to refer and rely on Jake and the rest of the PMI team.


Bryce M

Deb and her team were fantastic to work with. Jake helped guide us through the whole process and was absolutely a pleasure to work with. I highly recommend!


Ryan Barlow

Great team! I really gave them a run for their money, but Deb's team pulled through. Excellent customer service, friendly, timely and professional. Happy with my new rate, and getting rid of PMI. :)


Becky Robbins

Deb Klein and her team make the process smooth, easy and straightforward. I worked with Primary Residential Mortgage in another state and was referred to her team when I moved to AZ. I had great experiences with their staff in both states and found their fees reasonable compared to other companies. Highly recommend Deb and her team!


Mohamud O.

Going through Deb's team made the home buying process seamless with all the portal instructions and easy navigation. Jake helped my fiancée and I buy our...


Roy J. DuPrez

Deb was SUPER helpful and was able to tactfully assist through some obstacles that enabled me to access the home I love living in today!


Brian Lombardi

Deb has done several mortgages for me in the past. There's no one better when it comes to working on your behalf and her follow-up is impeccable. If you have a mortgage need, she's the one to go to.


Ryan Hall


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