FHA Loans in Washington, Oregon, California, and Arizona

FHA loans offer several advantages for qualified borrowers.

Low Down Payment
Qualified borrowers may be able to purchase a home with as little as 3.5% down.

Flexible Credit Guidelines
FHA programs may allow borrowers with less-than-perfect credit to qualify compared to some conventional loan options.

Gift Funds Allowed
Down payment funds may come from eligible gift sources, which can make it easier for some buyers to purchase a home.

Higher Debt-to-Income Flexibility
FHA guidelines may allow higher debt-to-income ratios depending on the borrower’s full financial profile.

Available for 1–4 Unit Primary Residences
FHA loans may be used for primary residences including single-family homes and certain multi-unit properties (up to four units).

When applying for an FHA loan, the following documents are commonly requested to help verify income, assets, and identity.

Employment and Income

• Two years of W-2s or 1099s
• Most recent pay stubs covering 30 days
• Two years of tax returns (if required)
• Self-employed borrowers may need additional documentation such as business tax returns or profit & loss statements

Asset Documentation

• Two to three months of bank statements for all accounts
• Statements for retirement or investment accounts (if used for qualification)

Identification

• Driver’s license or other government-issued ID
• Social Security number verification
• Documentation for alimony, child support, or divorce agreements (if applicable)
• Permanent residency documentation if applicable

Your mortgage advisor will guide you through the documentation requirements based on your specific situation.

What is FHA?
FHA stands for the Federal Housing Administration, a government agency created to help expand access to homeownership by insuring mortgage loans.

What is the minimum down payment?
Qualified borrowers may be able to purchase a home with 3.5% down, depending on credit qualifications.

Do FHA loans require mortgage insurance?
Yes. FHA loans require both an upfront mortgage insurance premium (UFMIP) and monthly mortgage insurance.

What types of properties qualify?
FHA loans are available for primary residences, including:

• Single-family homes
• Approved condominiums
• 2–4 unit properties
• Certain manufactured homes

Are FHA loans assumable?
In many cases, FHA loans may be assumable, subject to lender approval and qualification.

Can FHA loans be refinanced?
Yes. FHA borrowers may be eligible for several refinance options, including FHA Streamline Refinance programs.

Qualification requirements can vary depending on the borrower’s full financial profile. Typical FHA guidelines include:

• Minimum 3.5% down payment for qualified borrowers
• Stable employment or income history
  Acceptable credit history
• Property must be the borrower’s primary residence
• The home must meet FHA property standards

Credit scores, debt-to-income ratios, and other factors may vary based on the specific loan scenario.

Borrowers who already have an FHA mortgage may be eligible for an FHA Streamline Refinance.

This refinance option is designed to help borrowers reduce their interest rate or monthly payment with less documentation compared to a traditional refinance.

Possible benefits may include:

• Limited documentation requirements
• In some cases, no new appraisal may be required
• Potential to reduce interest rate or monthly payment

To qualify, the refinance must demonstrate a Net Tangible Benefit, meaning the new loan must provide a clear financial advantage to the borrower.

Your mortgage advisor can help determine whether an FHA Streamline Refinance may be appropriate for your situation.

Disclosure

This material is not from HUD or FHA and has not been approved by HUD or any government agency.
Programs, rates, terms, and qualifications are subject to change without notice. Additional conditions may apply.