FHA MORTGAGE LOANS

START MAKING MEMORIES SOONER WITH AN FHA MORTGAGE

Home prices are high nationwide, and Utah is no exception. Soaring housing costs can make it difficult to get a foot in the door, especially if you’re just starting out and don’t have a lot of cash on hand. An FHA Mortgage is backed by the government and is designed to make it easier for young and working families to get a start in the housing market.

WHAT IS AN FHA MORTGAGE?

An FHA mortgage loan is a home financing tool extended and insured by the Federal Housing Administration. Government backing allows lenders like Wasatch Peaks Credit Union to offer more affordable deals and better mortgage terms.

These types of loans typically have much lower down payments, interest rates, and monthly payments than conventional mortgages.

We offer FHA Mortgages with:

• Lower down payment requirements
• Competitive closing costs
• More flexible credit qualifications
• Mobile and manufactured homes financing
• Fixed and adjustable-rate options
• Refinancing options for outside lenders
• Higher loan amounts determined by location

Looking to buy but not sure you have the ready cash for a down payment, or the financial resources to make payments on a conventional home mortgage? An FHA loan could be the way to go!

THREE STEPS TO APPLY FOR AN FHA MORTGAGE IN UTAH

★★★★★

"Have been very pleased with these guys. Always friendly and helpful."

- Dave B., Pleasant View, Utah

FHA MORTGAGE FAQs

• What are the requirements for an FHA loan in Utah?

  Requirements for an FHA loan in Utah are similar to those in most other states. In most cases, you will need:

  • A credit score of at least 580
  • Cash for an FHA down payment of at least 3.5%
  • A debt-to-income (DTI) ratio below 43%
  • A steady income and proof that you can afford the mortgage payments
  • A property that meets FHA standards and that will be your primary residence

• Can you get prequalified for an FHA loan?

  Yes, you can get prequalified for an FHA loan. Prequalification is simply an estimate of how much you might be able to borrow based on financial information like your income, debts, and credit score. It’s not a guarantee of funding, but it gives you an idea of how much you are able to spend when you go house hunting. 

• Are FHA loans hard to get?

  FHA loans are generally easier to get than conventional loans. They’re designed for first-time buyers and people with lower credit scores or smaller down payments. Lenders still check your credit, income, and debt, but the requirements are more flexible than most other loan types.

• How long is FHA pre-approval good for?

  FHA loan preapproval is typically good for 60 to 90 days. If you don’t find a home in that time, you may need to update your financial information and get pre-approved again.

• Can I apply for an FHA loan myself?

  Yes, you can apply for an FHA loan yourself through FHA lenders in Utah. You don’t apply directly with the FHA. Instead, you choose a lender, like Wasatch Peaks Credit Union, that offers FHA loans.

• How much FHA do I qualify for?

  The amount you can qualify for with an FHA loan depends on your income, debts, credit score, and local FHA loan limits.  We’ll calculate your borrowing power using your financial information, like your debt-to-income ratio (DTI ratio), and the FHA’s maximum loan limit in your area.

• What would disqualify you from getting an FHA loan?

  You could be disqualified from getting an FHA loan for several reasons:

  • A credit score below 500
  • Too much debt—usually a DTI ratio above 43–50%
  • Not enough income to afford the monthly payment
  • A poor credit report, such as a recent foreclosure or bankruptcy (within the past 1–2 years)
  • The home you want does not meet FHA property standards

• What credit score is needed for an FHA mortgage in Utah?

  For FHA mortgages in Utah, you’ll need a credit score requirement of at least 580 to qualify for loans with the lowest down payments (3.5%). Credit scores of between 500 and 579 might still qualify for a 10% down payment. Credit scores below 500 are unlikely to receive FHA funding.

• Do I need to join Wasatch Peaks Credit Union to apply for an FHA loan?

  Yes, you need to join the credit union, and becoming a member is easy! You simply need to meet these criteria:

  • You are an immediate family member of an existing member-owner, such as a parent, child, brother, sister, spouse, or surviving spouse.
  • You live, work, worship, or attend school in Weber, Morgan, or Davis Counties in Utah.

CHECK OUT OUR OTHER GREAT MORTGAGE LOAN OPTIONS