What is an FHA loan? The Federal Housing Administration (FHA) is a federal government agency under the Department of Housing and Urban Development (HUD). The FHA provides mortgage insurance on loans made by FHA-approved lenders. FHA mortgage insurance reduces the risk to the lender, allowing lenders to lend at lower rates, more favorable terms, and under more lenient requirements for borrower credit-worthiness. To qualify for the FHA insurance program, lenders must follow FHA guidelines in assessing the credit-worthiness of the borrower and the value of the property. Loans made by FHA-approved lenders that qualify for the FHA insurance program are called "FHA Loans".

Is the FHA loan a good choice for me? FHA loans are a good choice for borrowers with limited income and assets who do not have funds for the 5% downpayment usually required on conventional loans.

FHA loan features:

• Low downpayment. Your cash investment can be as low as 3%.
• Gift funds allowed. Your required cash investment can be funded by a gift from a family member, your employer, or a downpayment assistance program.
• Cash Reserves not Required.
• Flexible qualifying ratios. A debt-to-income ratio greater than 41% may be acceptable if compensating factors are present.
• Lenient on derogatory credit history. Borrowers with a Chapter 7 bankruptcy that was discharged more than two years ago, and who have re-established good credit, can qualify. Borrowers paying off debts under Chapter 13 can qualify if one year of the pay-out period has elapsed, performance has been satisfactory, and the borrower receives court approval to enter into the mortgage transaction.
• Closing costs can be paid by the seller. The seller (and/or any other interested third party) can contribute up to 6% of the sales price toward closing costs and prepaid expenses. 6% is usually sufficient to cover all closing costs and prepaids.
• Non-occupant co-borrowers allowed for qualifying purposes. Borrowers with insufficient income or poor credit can qualify with a parent or other relative that is willing to serve as a co-borrower on the loan.
• Energy efficient improvements can be financed into the loan.
• Streamline refinance available. Your FHA loan can be refinanced without your having to requalify on income or credit, as long as you have made all your mortgage payments on time. No appraisal is required and closing costs can be financed into the new loan.

To qualify for an FHA loan, borrowers must satisfy lender guidelines for income, assets, and credit. There are no maximum income limits, but maximum loan amounts apply in each county. For more information, contact Allied Home Mortgage.

To apply for an FHA loan, fill out our short prequalification form, or submit an online application, or call us at 503-356-2241.

Allied Home Mortgage offers competitive rates, low fees, and superior service on hundreds of loan programs, including conventional, FHA, VA, and USDA Guaranteed Rural Housing. At the Hillsboro, Oregon branch we are licensed to originate home loans throughout Oregon and Washington. We specialize in financing real estate purchase transactions, including manufactured home land-home packages. We also offer rate and term refinances, cash-out refinances, home equity loans, and construction loans. We welcome applications from first-time homebuyers, borrowers with limited income and assets, and borrowers with damaged credit that have been turned down elsewhere. Click here for more information about us.

	Allied Home Mortgage Capital Corporation 111 SE 3rd Ave, Suite C Hillsboro, Oregon 97123 503-356-2241
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