The Primary goal for the Federal Housing Authority (FHA) is to improve the housing market and protect lenders in the event a borrower defaults on their mortgage. The FHA was created as a part of the National Housing Act. It became a part of the Department of Housing and Urban Development in the 1960’s. The FHA has grown to become the largest insurer of Mortgages in the world. At Bank of England Mortgage in Connecticut we are proud to offer grate rates and flexible financing options on Connecticut FHA Loans.
A Connecticut FHA Loan can be used for a number of Different Purposes, including Purchasing a new home, refinancing for a lower rate, withdrawing cash to pay off debt or finance home repairs, home renovations, rehabilitation projects, and Reverse Mortgages, to name several.
Connecticut FHA Loan offers relaxed options for credit, down-payment and income standards making them easier to qualify for. Buyers can qualify for an FHA loan with a down-payment of only 3.5% of the purchase price and a credit score of 580. FHA Loans also allow for family members to gift money for down-payment and closing costs.
Connecticut FHA Loan Requirements
- Down Payment: A Down Payment of 3.5% is the minimum payment allowed.
- Income Requirements: A debt to income ratio of 55% of borrower’s total income is generally required for a Connecticut FHA loan..
- Credit Score: Typically the minimum credit score required is 580. Borrower’s with a lower credit score may qualify with a higher down payment.
- Property Requirements: Properties purchased through the Connecticut FHA must meet security, safety and structural integrity requirements
At Bank of England in Connecticut we help our clients wit all of their FHA loan needs. Whether you are purchasing your first home or looking to refinance, we can help. Contact us today at 203-208-4152 with any questions you may have on CT FHA loans, to get prequalified or for a Free consultation.