FHA Loans From The Experts

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FHA Loans Rapid City

Federal Housing Administration loans (FHA)  are a great alternative for people looking for a mortgage with a lower down payment. Unlike a conventional loan, the FHA loan limits lenders to charge only up to 3.5% down payment and to potentially add closing costs and other fees into the loan amount. 

The process of navigating an FHA loan can be difficult and confusing for first-time homebuyers or people who have never used one. Affiliated Mortgage will help you learn how the mortgage process works and help you with your FHA loan.

Who can qualify for an FHA loan?

FHA loans are attractive to many first-time buyers, young buyers, and senior citizens because they do not require perfect credit or as much of a down payment. Additionally, there is an FHA loan available for homes that need improvements. If you are approved for the FHA loan, then it will cover the cost of the property as well as closing costs and home improvement costs. You may be able to get an FHA loan to cover repairs if your current home needs significant repairs as well. 

FHA loan requirements

There are criteria for an FHA loan including:

  • FICO score of 500+ if you put down 10%, or 580+ if you put down 3.5%. 
  • Verifiable employment history (using pay stubs, tax returns, and bank statements) for two years. 
  • The loan is being used for your primary residence and the proper is appraised by an FHA- approved lender to meet HUD property guidelines. 
  • The mortgage and monthly debt payments would not exceed 43% of your gross monthly income. 

Which is a better loan, FHA, or conventional?

FHA loans are insured by the government, whereas conventional loans are not. For some people, an FHA loan is a better option, but for others the conventional loan is. While an FHA is more flexible to obtain and does not require as high of a credit score, you have to pay mortgage insurance on it. A conventional loan is more difficult to obtain (requires a higher credit score and a higher down payment), but it does not have as many provisions. 

FHA loans may be better for people with an imperfect credit score or those who cannot put as much money down. First-time home buyers, young buyers, and senior citizens often benefit from an FHA loan. Conventional loans can be beneficial for people with a very high credit score, as you can get a better rate on these loans. 

Is an FHA loan right for you? Find out if you qualify for an FHA loan and start the process today by contacting one of our knowledgeable Affiliated Mortgage FHA lenders today. 

Learn How The Mortgage Process Works And The Types Of Loan We Offer You

Loan application. Time est: 30 min
Get Pre Qualify
Get a pre approval. Time Est: 2-24 hours
Discover your best loan fit with your loan officer. Time Est: 30 minutes
1 Conventional
2 FHA Loans
3 VA loans
4 USDA Loans

Technically speaking, a conventional loan is any mortgage that is not guaranteed or insured by the US government, such as VA, FHA and USDA. Conventional mortgages include portfolio loans, construction loans, and even subprime loans. Property types include 1-4 unite properties, manufactured homes on their own land, condos, and town homes.

FHA loans typically offer options for first-time home buyers, senior citizens and home improvements. If you are a first-time home buyer, an FHA loan may allow you to make a down payment of 3.5% (ie. You don’t have to save up too much money for a down payment). Because FHA loans are insured, lenders can and do offer FHA loans at attractive interest rates and with more flexible qualification criteria. If you are interested in a home that requires some improvements, there is an FHA loan to address your needs.

VA Loans in South Dakota and Wyoming are made to fit the unique needs of Veterans, current military personnel, and in some cases, spouses of veterans or current military personnel. A VA Mortgage differs to some degree from a standard mortgage. While provided through Affiliated Mortgage, the loan is guaranteed in part by the Department of Veterans affairs. Those eligible for VA loans can have little or even no down payment. There are a few special considerations for a VA Loan: good credit and enough funds for payment are among them.

USDA Loans, commonly referred to as Rural Development loans provide borrows with a variety of attractive benefits if the subject property falls within the USDA RD Home Loan Footprint. USDA loans require no down payment and borrowers may finance up to 100% of the property value. While these loans are attractive, you must meet income restrictions for the county in which your new home is located. Each county has a maximum income requirement however the USDA Home Loan Program does allow for certain considerations. One of the final primary criteria’s is that the property be an owner occupied property, investment properties are not eligible.

Negotiate your future hoме. Time est: 2-5 days.

a- Find with help of your real estate agent the best-fit house for your needs and upon your choice, decide the terms you want to negotiate into your purchase contract. These may include: price, closing cost, and closing date.

b- Execute a contract: all parties sign the final contract to set the purchase in motion.

c- Deliver a fully executed purchase agreement to your loan officer.

Home inspection. Тime est. 48 hours

This is an optional step in which a home buyer can hire an independent inspector to view the home and make sure there aren’t any issues with the integrality of the home before fully committing to buy the house.

Documentation. Est time: 7 days.

a- Your loan officer prepares your loan documents for signatures.

b- A full loan package is submitted for processing.

Appraisal (2 Weeks).

A licensed appraiser will conduct a review of your new home’s value, make sure that there is sufficient collateral to support the mortgage and that the house is in adequate condition for the loan

Processing Time est: 5 days.

Affiliated mortgage’s processing team will double-check your documents and make sure your file is complete. At this time a conditional loan approval is issued.

Clear To Close Time Est: 3 days

a- The title company and Affiliated Mortgage will collect all the invoices for the services provided during the loan process.

b- The title company will coordinate a time to meet with the new home owner, your loan officer, and realtors to execute the final mortgage and pertaining documents.

c- The title company then takes the money funded by Affiliated Mortgage and pays out all outstanding balances. Then, the title company gives the homeowner a clear title to their new home.

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