Finding the right FHA lender can sometimes be a tiring process.
But it needn’t be. Obviously, not all banks offer FHA loans. And maybe that’s where the tediousness of finding an FHA lender is for you.
If so, you’re at the right place. This article will explore the top banks in the United States that offer FHA loans, their eligibility requirements, and what to consider when choosing a lender.
So, whether you’re looking to purchase your dream home or refinance your existing mortgage, your answers are all here.
What are FHA Loans?
FHA loans seek to help low and moderate-income borrowers become homeowners with lower down payments and more lenient credit requirements.
They are insured by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD).
Institutions that offer FHA loans include approved lenders such as banks, mortgage companies, and credit unions across the United States.
How Do I Find Banks That Offer FHA Loans?
If you’re keen on getting financed by the FHA through a bank, there are a few places to look. These include the following:
- Check the HUD website: The HUD (Department of Housing and Urban Development) has a list of FHA-approved lenders on its portal. You can search for them by state, and the list includes banks, credit unions, and mortgage firms that offer FHA loans.
- Ask for recommendations: If you know a family member or friend who recently got an FHA loan, ask them which bank they used.
- Research online: You can also do a quick online search for banks that offer FHA loans. You may find websites that let you compare rates and terms from multiple lenders.
If you’re looking to purchase a home in any of our service areas, give us a call, and let’s show you the best options around.
What Are the Differences Between FHA Loans from Different Banks?
While the FHA comes with its own eligibility criteria, you’ll find that some banks and lenders offer slightly different terms to their borrowers.
For banks, some of these differences are found in:
- Credit rating: Different banks have different credit rating requirements for their FHA loans. Some banks require a higher credit score than the minimum FHA requirement of 500, while others may be more lenient.
- Interest rates and fees: Some banks also offer lower rates and fees than others, making them more affordable. It’s crucial that you shop around and compare rates and fees from different banks to find the best deal for your financial situation.
- Level of customer support: Some lenders have automated application processes and offer less personalized guidance and communication, while others have a more hands-on, relationship-based approach but longer processing times.
Note that these requirements also affect how much you qualify for.
Who Is the Best Lender for FHA Loans?
The best FHA loan lender for you depends on several factors, including your credit rating, income, and the property you’re looking to finance.
Here are some of the top lenders:
| Bank Name | FHA Loan Program Details |
|---|---|
| Bank of America | Has fixed-rate and adjustable-rate FHA loans with low down payment options and flexible credit requirements. |
| Chase Bank | Has FHA loans with low down payment options and flexible credit requirements. Offers a specialized FHA energy-efficient mortgage that can be used to finance energy-efficient upgrades. |
| Quicken Loans | Has FHA loans with low down payment options and flexible credit requirements. Offers an online application process for easy and convenient access. |
| US Bank | Has FHA loans with low down payment options and flexible credit requirements. Offers an FHA streamline refinance option for existing FHA borrowers. |
| Wells Fargo | Has FHA loans with low down payment options and flexible credit requirements. Offers a specialized FHA renovation loan that can be used to finance home improvements. |
Quicken Loans FHA Loan Requirements
Quicken Loans is a well-known and popular online mortgage lender with a wide range of mortgage loan products, including the FHA loan, and its variations like refinancing with an FHA loan, and the FHA 203k loan.
They are one of the largest mortgage lenders in the United States, serving customers in all 50 states. If you’re considering getting an FHA loan from there to finance your dream home, here are some of the key requirements to note:
- Credit rating: Quicken Loans requires a credit rating of at least 580 for an FHA loan. However, if you have a credit rating under 580, you may still qualify for an FHA loan with a 10% down payment.
- Down payment: The lowest payment for an FHA loan via Quicken Loans is 3.5%. This means you would need to put down at least 3.5% of the home’s purchase price to qualify for an FHA loan. However, keep in mind that if you have a credit rating under 580, you may be required to make a higher down payment of at least 10%.
- DTI ratio: Quicken Loans generally requires a DTI ratio of 50% for FHA loans. However, in some cases, a higher debt-to-income ratio may be allowed with compensating factors such as a larger down payment or substantial cash reserves.
- Employment history: Quicken Loans will review your employment history to decide whether you can afford the monthly payments on your FHA loan. You should provide your pay stubs, tax returns, and W-2s to prove your employment history and income.
- Property requirements: Quicken Loans also requires that the financed property meets certain standards. This includes a thorough appraisal of the property to ensure that it meets minimum property standards, as well as any additional requirements specific to the type of property being financed.
Frequently Asked Questions
Are there any online lenders that offer FHA loans?
The best ones have been included in this article. Each one has it’s pros and cons, so depending on what you’re looking for, you can reach out to each one of them if you’d like…or since you’re already, feel free to ask us anything by getting in touch or get a free rate quote in under 30 seconds.
Can I apply for an FHA loan at any bank?
Yes, you can apply for an FHA loan at any bank or lending institution that offers FHA loans.
However, keep in mind that not all banks and lenders may offer FHA loans, so it’s important to research and find a lender specializing in FHA loans with experience working with people seeking FHA financing.
When choosing a bank, consider factors such as customer support, experience with FHA loans, and industry reputation.
Can I get an FHA loan from a credit union or non-bank lender?
Yes, getting an FHA loan from a credit union or non-bank lender is possible.
In fact, credit unions and non-bank lenders may offer more competitive rates and terms than traditional banks. Research and compare offers from various lenders to find the best option for your individual needs.
How do I compare FHA loan offers from different banks?
Comparing FHA loans from different banks is time-consuming. Here are a couple of things to consider when comparing loans that will help you save time:
- Fees: FHA loan fees can vary widely between different banks, and they can include appraisal fees, origination fees, and other closing costs. Be sure to compare the fees associated with each loan offer to find the most affordable option.
- Interest rates: Interest rates can significantly affect your monthly payment and the total amount you will pay over the life of your loan. Be sure to compare the interest rates different lenders offer to find the most competitive rate.
- Loan term: The loan term is the period of time you have to settle your loan. FHA loans typically have terms of 15 or 30 years. Compare the loan terms different lenders offer to find the best option for your financial situation.
Found Your Bank?
Several banks across the United States offer FHA loans, so it’s crucial that you do thorough research to find a lender that meets your individual needs.
Banks, however, are not the only FHA loan lenders. With credit unions, online lenders, and other non-bank lenders available, be sure to find one that can tailor a foolproof plan to bring your homeownership dreams to reality.
You can contact us if you’d like to learn more about the banks that offer FHA loans. We’re happy to advise you on the best FHA loan banks in your area of residence.
