More information of FHA Loan
U.S. Bank's FHA mortgage loan offers the opportunity to purchase a home to those families who do not meet the minimum requirements for a conventional mortgage loan. This product is backed by the Federal Housing Administration (FHA), which serves as an additional guarantor to reduce the increased risk for banks in offering these loans.
With this mortgage it is also possible to finance a higher percentage than usual, being able to reach 96.5% of the appraisal price, since the down payment can be as low as 3.5%. However, in order to obtain this percentage it will be necessary to take out additional insurance.
The interest rates on these FHA loans, which are fixed for the entire repayment term, are higher than on regular mortgages, currently at 7.95% APR (annual percentage rate) for 30-year loans.
Requirements to be met by the property
To get one of these U.S. Bank FHA mortgages, the home you want to purchase must meet the following conditions:
- To finance only the home where you are going to reside on a regular basis, second homes or vacation homes cannot be financed.
- It must be appraised by an FHA-approved appraiser.
- It must ensure the safety of the property and the occupants.
- Must not have physical deficiencies or conditions that affect its structural integrity.
Español: Préstamo FHA de U.S. Bank