December 30, 2019
Where do you get an FHA home loan? The simplest answer is that you get one from a participating FHA lender. Not all banks or financial institutions support FHA home loans, and those that choose to do so must be vetted and approved by the government first.
FHA Loans Are Offered By Participating Lenders
As mentioned above, not all lenders participate in the FHA loan program–but did you know some are not permitted to participate, and some may not be certified by the FHA yet?
Your search for a lender may seem daunting, but you can be matched with a participating lender online and do the initial loan screening online, too.
You’ll need a variety of information including your estimated budget for the purchase, the desired term of the loan you seek (15 or 30 years), and the type of home loan you wish to prequalify for-a new purchase loan or an FHA refinance loan.
FHA Loan Types
There are many different kinds of FHA loans to choose from. A single participating lender may offer mobile home loans, new construction loans, FHA Jumbo loans, FHA condo loans, FHA refinance loans, etc.
Some FHA loans are night the right fit for a borrower simply because the loan doesn’t allow the purchase of a certain kind of home.
For example, if you want a condo unit, there is a specific kind of FHA mortgage for that. A mobile home loan is also different, and a rehab loan for a fixer-upper has it’s own unique set of requirements.
There isn’t one generic home loan for all property types, but variations on the FHA loan for certain transactions.
Searching, Shopping Around For The Right Lender
Not all lenders offer the same FHA loans, rates, terms, or conditions. You may find some lenders won’t do FHA condo loans, others may not do multi-unit construction loans, or mobile home loans.
Other lenders may be willing to do one or all of these.
But you won’t know until you shop around. It may be helpful to make a chart of things you expect from your lender in terms of interest rates, FICO score requirements, type of property loans they support, etc.
Remember that while you are searching for a lender, it’s good to be pulling your credit reports and researching your own credit picture in the meantime–know what your lender will see on your credit report and you will be much better prepared to move forward with your mortgage.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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