West Virginia FHA Loans
We are helping West Virginia 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 West Virginia. 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 whether you live in Charleston, Huntington, Morgantown or anywhere else in West Virginia.
West Virginia FHA Mortgage BenefitsÂ
- FHA mortgages allow for low credit scores down to 500.
- FHA mortgages require very low down payments of 3.5%.
- FHA mortgages never have pre-payment penalties.
- FHA mortgages help borrowers to find their dream home and are often the choice for first time home buyers.
- Down payment assistance is permitted and may be available through Dream Home Financing.
- You may receive a gift towards your down payment from a family member.
- There are no income limits.
- You can get approved for an FHA loan with a recent chapter 13 bankruptcy.
West Virginia FHA Loan Requirements
- 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 Documentation – You must show recent pay stubs, tax returns 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.
- 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. Read more about FHA DOWN PAYMENT INFORMATION
- FHA Credit Score Requirement – You can qualify for an West Virginia FHA mortgage with a credit score of 580 or more. You may also get qualified with a credit score as low as 500, but you will likely have to put as down as much as 10%.
- 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 page.
Click to connect to a West Virginia FHA loan specialist to see if you qualify and to get a rate quote
Types of FHA Loans Available in West Virginia
There are multiple FHA loan products available for purchasing or refinancing a home. Not all West Virginia 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 West Virginia
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 West Virginia FHA Loan Limits by County See how much you can borrow
How to Apply and Get Approved
The first step in securing a pre-approval is to complete the lender or mortgage broker loan application. It is important to complete the application fully to avoid any delays.
Next, your lender will pull your credit to import your debt or liabilities into the application. It is at this point where you can receive an initial pre-approval.
The loan officer will ask you to provide all of the required documentation to validate your eligibility and as supporting documents to provide to the underwriter for final approval.
Once your loan officer has submitted the full loan package to the underwriter, it will take a couple of days for review.
The underwriter may have some additional requirements for you to fulfill. Some of these include more pay stubs or bank statements. Getting an appraisal will also be on the list of requirements and that appraisal must be equal to or greater than the purchase price.
The entire process if managed properly can take less than 30 days.
FHA Streamline Refinance
One of the best programs offered by the FHA is the FHA streamline refinance. This loan is for borrowers who currently have an FHA loan on their home. It offers the ability to refinance the existing mortgage balance without providing income documentation and also without an appraisal.
Credit scores are not used to determine eligibility but they are used to help determine the rate you are offered.
The streamline refinance is typically used to get a lower rate, or to change the loan term. The interest rates are extremely competitive and you can close in just a few weeks.
Read more about the FHA streamline refinance.
Contact us here to speak with someone to help answer your questions or to get a quote.
West Virginia FHA Construction Loan
One of the great FHA programs is their one time close construction loan. With just 3.5% down, you can purchase the lot for your home and also pay for the entire build including permits, architects, and virtually any cost related to your home build.
Once the home has been completed, the loan becomes your permanent FHA loan at the same rate without the need for a new closing or loan.
Although the credit score requirements for FHA loans begin at 500, the lenders who offer the FHA construction loan in West Virginia will likely require higher scores.
If you would like to learn more or if you are ready to get a quote, contact us here , put “construction loan” in the comments field and one of the loan officers will reach out the same day.
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 us 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 us because the limits vary by county and they change annually. You can click the link here 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 us 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.
Q: What is the minimum credit score needed for an FHA loan in WV?
A: The minimum credit score for an FHA loan is 500 but with a 10% down payment.
Q: Are there any specific property requirements for FHA loans in the state of West Virginia?
A: The property must be used as your primary residence and the property types allowed are 1-4 family residential homes.
Q: In West Virginia, do I need to be a first-time homebuyer to qualify for an FHA loan?
A: FHA loans are not just for first time home buyers although they are the most popular type of mortgage for first time home buyers.
Q: Are there income limits for FHA loans?
A: There are no income limits for FHA loans and your earnings annually can be in the millions.
Q: Are there any down payment assistance programs available in West Virginia?
A: There are many down payment assistance programs in West Virginia and if your scores are at least 620, we can offer a down payment assistance program that is part of your loan package.