Ohio residents who have a 2 year work history and a down payment of 3.5% can get approved for an FHA loan even with poor credit scores. There are some basic requirements to qualify for an FHA loans in Ohio which we will explain below and afterwards we can help you to find an FHA lender who can help you locally.
We can help you to find the best FHA lender in Ohio regardless as to whether you live in Columbus, Cleveland, Cincinnati, Toledo or anywhere else in Ohio. Simply complete this loan scenario form and someone will call you back immediately.
Delaware Office of the State Bank Commissioner, Lender License #9799 (DBA United Mortgage Corp)
Delaware FHA Home Loans
We are helping Delaware residents to find a low down payment FHA home loan. Here, you will find some basic information needed to understand what an FHA Loan is, what the qualifications are as well as the FHA loan limits in Delaware. If you qualify, an FHA loan is a great way for borrowers to get into a home with a small down payment. We can help you regardless as to whether you live in Wilmington, Dover, Newark or anywhere else in Delaware.
What are FHA Loans?
FHA loans are government backed mortgages that are insured by the Federal Housing Administration (FHA). They are the most popular type of mortgage for first time home buyers because they allow for a small down payment, lower credit scores, and a higher debt-to-income ratio.
FHA Mortgage Benefits in Ohio
These are just a few of the many benefits that Ohio homebuyers can expect when applying for an FHA loan.
- FHA mortgages allow for low credit scores as low as 500
- FHA mortgages require very low down payment of only 3.5%
- FHA mortgages never have pre-payment penalties
- You can finance your home with an FHA loan just two years after a chapter 7 bankruptcy
- With an FHA loan you can use down payment assistance or a gift from a relative for your down payment
- FHA mortgages help borrowers to find their dream home and are often the choice for first time home buyers
- Interest rates are sometimes lower vs conventional loans
- The largest benefit is home affordability for those who cannot qualify for conventional loans.
If you would like to know more about FHA loans or to get pre-approved, complete this short loan scenario form.
Ohio FHA Loan Requirements
These are the basic FHA eligibility requirements to qualify for an FHA loan in Ohio as outlined by the FHA Handbook 4000.1.
- FHA Employment Requirements– You must have a full two year work history to qualify. If you are self employed, you would need to have owned your business for two years.
- Residency Requirements – The home you plan to purchase must be occupied as your primary residence. Multi family buildings up to 4 units are eligible as long as you occupy one of those units are your own residence. Investment properties are not allowed.
- FHA Income Requirements and Documentation – FHA guidelines require you to have the ability to qualify within the FHA debt to income ratio limits. You must also have the ability to fully document your income. The FHA lender will ask for your most recent pay stubs, tax returns and W2’s for the past two years, and bank statements for the past two months. If you are self employed, you will need to also document your income by providing two years of tax returns.
- FHA Mortgage Down Payment Requirement – The minimum down payment requirement for an FHA mortgage in 2018 is 3.5% with a credit score of 580 or higher. If your credit score is below 580, the a 10% down payment will be required. Read more about FHA down payment information
- FHA Credit Score Requirement – You can qualify for an Ohio FHA mortgage with a credit score of 580 or more. You may also get qualified with a credit score as low as 500.
- FHA Mortgage Insurance (MIP) – You will be required to have an FHA mortgage insurance premium (MIP). You may read more about what this insurance will cost at our full FHA mortgage article.
These are just some of the basic requirements as outlined by the FHA handbook. There are many more specific guidelines and qualification requirements that may help or prevent you from getting approved for an FHA loan.
In addition, not all lenders are the same. Some may impose their own requirements that make it more difficult to qualify. Let us help you to find a lender who can help based upon your specific needs.
CLICK TO GET A Delaware FHA RATE QUOTE
Types of FHA Loans Available in Ohio
There are multiple FHA loan products available for purchasing or refinancing a home. Not all Ohio mortgage lenders offer all of these but we can help you regardless of what your needs are.
- FHA Purchase – For the purchase of your primary residence.
- FHA Refinance – To refinance an existing FHA loan or any type of mortgage into an FHA loan.
- FHA 203k Rehab – This loan allows you to purchase or refinance your home while also borrowing the money needed to rehab or update the property.
- FHA Construction Loan – With this program, you can purchase property and also build your dream home all with just one FHA mortgage.
- FHA Streamline Refinance – This loan will allow you to refinance your FHA loan without an appraisal or income documentation. Read more here.
- FHA Cash Out Refinance – You can refinance your home and cash out equity up to 80% of the appraised value.
If you have questions about any of these FHA loan products, simply contact us here.
FHA Loan Limits in Ohio
Homebuyers are limited to how much they can get approved for by their debt to income ratio (DTI), but also the loan limits or maximum loan amounts available in each county.
Every year the Federal Housing Administration provides updated loan limits for the following year. The limits are higher for multi family homes than they are for single family homes. Review the Ohio FHA Loan Limits by County See how much you can borrow
FHA Streamline Refinance in Ohio
An FHA streamline refinance is an excellent way to reduce your interest rate and monthly mortgage payment when rates have come down. The following are some of the benefits of an FHA streamline refinance in Ohio.
- No appraisal needed
- No credit check required
- It is okay if your home declined in value
- Reduced upfront FHA mortgage insurance premium
- FHA closing costs can be rolled into the loan
When you consider these benefits, an FHA streamline refinance may make a lot of sense for you. The exception to this would be if you already paid down more than 20% of the value. If that is the case, then you possibly would want to look at a conventional loan.
FHA 203k Rehab
The FHA 203k rehab loan is a great program which allows homebuyers to purchase the home with 3.5% down, and also borrow the funds needed to update or rehabilitate the property.
You still need to qualify for the total loan amount based upon your debt and income. The underwriter may ask to see your rehab plan and budget for the project.
The funds can be used to do virtually anything in the home from major repairs to painting and landscaping. What you cannot do is put in a pool, but you can repair a pool of one already exists.
FHA Cash Out Refinance in Ohio
You can use an FHA loan to cash out up to 80% of your home’s equity even if your current loan is not an FHA loan. This type of refinance requires full documentation and a new appraisal. You must also wait at least 12 months from your last mortgage and have on time payments to qualify.
The cashed out funds can be used for anything including paying off high interest debt, investments, or to update the home. There are no restrictions on what you can use the equity for.
Delaware FHA Loan Limits by County See how much you can borrow
Delaware FHA Streamline Refinance Loan Information
FHA Loan Frequently Asked Questions – FHA FAQ
Q: What is the FHA down payment requirement?
A: You will need to put down 3.5% for an FHA loan. More if your credit scores are extremely low.
Q: Do FHA loans require mortgage insurance?
A: Yes, if you are putting down less than 20%, you will need to pay monthly MI (Mortgage Insurance)
Q: Can veterans apply for an FHA loan?
A: Yes, but they will need to submit a DD form 212 with your application. We believe the best program for veterans is the VA Loan.
Q: What are the FHA mortgage loan fees?Â
A: The fees are regulated but we recommend that you contact an FHA lender here to outline all of the fees that may pertain to you.
Q: What is the FHA Loan limit in my area?
A: We recommend that you discuss this with one of our lenders or click the link above where you can research the limits in your area.
Q: Can I get an FHA loan with bad credit?
A: Yes, you can but the down payment requirement may be higher as well as the interest rate.
Q: Can I get an FHA loan on more than one property?
A: Typically no but there are some circumstances where it would be allowed. Contact one of our FHA Lenders to find out more.
Q: Are gift funds permitted to be used towards the down payment?
A: Yes, a gift can come from a relative, close friend, your employer, a charity, or a government agency.
We are able to help you to find an FHA loan with the best FHA lenders in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.