FHA Loans

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  • Down payments as low as 3.5%
  • More lenient requirements for income and credit history
  • Gifts are allowed for down payment and closing costs
  • Sellers can contribute up to 6% towards costs, including discount points, buydown fees, and buyers’ closing costs
  • Non-occupant co-borrowers are allowed*

Combine these flexible, low-cost financing options with the extended homebuyer tax credits**

Our FHA program offers a variety of benefits for buyers, especially first timers or those without large down payments or with credit challenges. Contact us today for more information.


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All about FHA Loans

Federal Housing Administration (FHA) loans are mortgage loans that are insured by the government, thereby reducing risk loss, for the FHA-approved lenders, in the event that the borrow defaults on the mortgage. The origin of the FHA loan goes back to the days of The Great Depression, after great economic instability was caused by many loan defaults and foreclosures. The FHA loan was established to help stimulate the housing market, and make loans and home ownership accessible to more people.

It is usually easy to qualify for an FHA loan because it only requires a low down payment (3.5 percent) and it is not necessary to have perfect credit. In the case of a prospective buyer who cannot afford a down payment of 20 percent or cannot get approved for private mortgage insurance, an FHA loan may be the ideal solution. An FHA loan may be an assumable loan, meaning that if the home is sold, the new buyer may assume or acquire the loan that is on it.

Since FHA loans do not have the tight standards of conventional loans, two kinds of mortgage insurance premiums are required. One premium is paid in full up front or financed into the mortgage, the other paid in a monthly installment. FHA loans require that the purchased home meet certain conditions and that the home must be appraised by an FHA-approved appraiser.

If you are challenged by poor credit, bankruptcy problems, or have been through a foreclosure, an FHA loan may provide you with the opportunity to become a homeowner. Liberty Financial is a FHA-approved lender. Contact us today to discuss whether a FHA loan would be the right option for you.

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What information will Liberty need to process my application?
  • Prior two years addresses and dates of residence.
  • Social Security number or tax ID.
  • Driver’s license or state issued identification card.
  • Prior two years employment information including employer contact and dates of employment.
  • Most recent W2 and pay stub for all income sources.
  • Two years federal tax returns, including tax applicable schedules if you are self-employed, have rental income, farm income or additional non-W2 reported income.
  • Alimony, child support or separate maintenance documentation if you wish to have it considered as basis for repaying this obligation.
  • Additional information may be required such as Divorce decree (if applicable) and/or proof of extra income such as rental income, dividends, Social Security, retirement, disability, pension, or welfare (supporting documentation is required).
  • Balance owed on all liens attached to the property including all mortgages as well as any home equity loans or lines of credit.
  • Most recent mortgage statement (if applicable).
  • Most recent property tax bill.
  • Most recent hazard insurance declaration page.
  • Most recent flood insurance declaration page (if applicable).

Loans are subject to credit review and approval. A sample monthly payment on a 30-year fixed loan amount, based on a $100,000 purchase price with $3,500.00 down (3.5% minimum down payment required), no points, monthly payments based on an interest rate of 3.75% interest rate, is $522.50. Rate listed is for a first-lien mortgage on owner-occupied single-family detached primary residences only. The payment listed does not include property taxes or homeowners insurance, MI is included.

The rate may vary depending on each individual’s credit history and underwriting factors. All loan programs, rate terms and conditions are subject to change at any time without notice. Property insurance required. Minimum loan amount may apply. Other restrictions may apply. *Down payment funds may also come from someone else in the form of a gift, so long as that gift and the giver meet certain FHA requirements, according to HUD 4155.1 Chapter Five Section B. **Other lending guidelines apply according to HUD 4155.1 Chapter Four Section A.1.f. Liberty Financial mortgage lending product availability may vary based on property location.