What is an FHA Loan?

Written By Melissa Cook
Nov 7, 2022
Facebook Share Icon LinkedIn Share Icon

An FHA loan is a mortgage insured by the Federal Housing Administration. This type of loan allows for lower credit scores and a higher debt-to-income ratio compared to conventional loans.

How to Qualify for an FHA loan

In order to qualify for an FHA loan, you must have a steady employment history, a valid Social Security number, and proof of legal residency in the United States. Your credit score must also meet the minimum requirements set by the FHA.

Benefits of FHA loans

One major benefit of an FHA loan is that it can be easier to qualify for than a conventional loan. They also have lower down payment requirements and allow for gifted funds to be used towards the down payment. Additionally, FHA loans have lower closing costs and allow for a higher debt-to-income ratio.
However, it is important to note that with an FHA loan, you will have to pay mortgage insurance both upfront and monthly. This cost can add up over time and should be considered in your decision to apply for an FHA loan. It is recommended that you speak with a financial advisor or lender to determine if an FHA loan is the best option for your unique situation.

How to Get an FHA loan

Once you have determined that an FHA loan is the right choice for you, the next step is to find a lender. It is recommended that you shop around and compare rates and fees from multiple lenders before making your decision.

When applying for an FHA loan, you will need to provide documentation such as pay stubs, tax returns, and proof of assets. The lender will also run a credit check and may request additional information or documents.

After your application has been submitted, the lender will go through the underwriting process to determine if they approve your loan. This can take anywhere from a few days to several weeks. Once approved, you will work with the lender to finalize any remaining details and close on your loan.  It is important to keep in mind that obtaining an FHA loan does not happen overnight and requires patience and diligence on your part to ensure a successful process.

Continue reading on what is a PPP loan and what does it mean to default on a loan.


See how Americor can help

Check Your Options

About Americor

Americor provides debt solutions to thousands individuals and families all over the country. We’re a next-generation debt relief company with a proprietary platform designed to help clients get out of debt quickly. Together we’ll develop a strategy for you to enjoy a debt free lifestyle. Learn more about how Americor can help relieve the burdens of debt today.

18200 Von Karman Ave, 6th Floor Irvine, CA 92612
New Clients:
[email protected]
Existing clients:
[email protected]

We provide debt resolution services. Our clients who make all monthly program payments save approximately 40 – 50% of their enrolled debt (average of 43%) upon successful program completion, before program fees. Fees are based on a percentage of your enrolled debt at the time of starting the program and range from 15%-25% of your enrolled debt. Programs range from 20-48 months. Clients must save at least 25% of each debt due to an enrolled creditor before a bona fide settlement offer will be made. On average, clients receive their first settlement within 4-7 months of enrollment and approximately every 3-6 months thereafter from when the prior debt was settled. Not all Clients complete the program. Estimates are based on prior results and may not match your results. We cannot guarantee that your debts will be resolved for a specific amount or percentage or within a specific timeframe. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice or credit repair services. Our program is not available in all states; fees may vary by state. Some programs may be offered through The Law Firm of Higbee & Associates d/b/a Advantage Law. The use of debt resolution services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding debt may increase from the accrual of fees and interest. Any amount of debt forgiven by your creditors may be subject to income tax. Clients may withdraw from the program at any time without penalty and receive all funds from their dedicated account, other than funds earned by the company or fees paid to third-party service providers, as may be applicable. Read and understand all program materials prior to enrolling. Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt relief companies. To determine the offers you may be eligible for, Americor conducts a “soft credit pull.” This credit pull does not impact your credit score, creditworthiness, or ability to obtain credit from other sources. The soft pull is not a tradeline entry, it does not report against your score and will only take a few minutes.

Americor Funding, LLC (18200 Von Karman Ave, 6th Floor Irvine, CA 92612) is fully accredited by the Better Business Bureau (BBB), the American Fair Credit Council (AFCC), and the International Association of Professional Debt Arbitrators (IAPDA). CA Department of Financial Protection and Innovation (DFPI) License # 603K913.

Copyright © 2022 Americor Funding, LLC dba Americor Financial. All rights reserved