FHA Loans

FHA loans have competitive rates, less stringent credit guidelines, and require lower down payments. It is a popular choice for first-time home buyers! 

We offer: 

  • No processing or underwriting fees
  • Up to $500 credit towards closing1 for Farm Bureau Members 

 
Apply Now: FHA Loans Contact a Loan Consultant: FHA Loans

Benefits and Features:

  • Down payment options as low as 3.5% 
  • Allows gift funds to be used for down payment
  • Allows home sellers to contribute up to 6% of borrower's closing costs
  • Allows broader range of income, debt, and credit history than conventional mortgages
  • Loans for 1- to 4-unit properties, townhouses and condominiums, and manufactured homes
  • Access to streamlined refinance programs
  • Required to pay mortgage insurance 
  • Only available to purchase or refinance a primary residence 


Who Should Use an FHA Loan?

FHA loans are a government-backed program designed to assist a broad range of people in achieving homeownership. Borrowers who have less-than-optimal credit or limited funds available for a down payment might consider an FHA Loan. They must be able to make a down payment of at least 3.5%, must live in the property they are purchasing, and have an acceptable debt-to-income ratio (depending on credit history). FHA borrowers generally need to have good credit, but even borrowers who have negative things in their earlier credit history may be eligible if they have demonstrated financial responsibility in recent years.


Understanding FHA Mortgage Insurance 

FHA loans require the payment of mortgage insurance. There are two parts of FHA's mortgage insurance: a one-time upfront mortgage insurance premium (UFMIP) paid at closing, and annual mortgage insurance premiums (MIP). The UFMIP is 1.75% of the purchase price of the home, and can sometimes be rolled into the total loan amount. The MIP is typically between 0.15% and 0.75% of the loan amount and is broken up among your monthly mortgage payments.

If an FHA borrower chooses to refinance into a conventional mortgage later, they may be eligible to eliminate the monthly mortgage insurance requirement.

Special Offer
Farm Bureau Members receive up to $500 towards closing1, plus no processing or underwriting fees
First FHA Loans Product Image

Homeowners with existing FHA loans can get a lower rate and lower their monthly payment with fewer income and appraisal requirements, using a FHA Streamline Refinance.2

  • Options to lower your payment without extending the length of your loan
  • Less documentation required
  • No appraisal needed
  • Simple, easier, and faster 

Second FHA Loans Product Image

Homeowners who wish to take cash out of their home equity to pay off debt, make home improvements, or fund life's adventures can take advantage of an FHA Rate Reduction or Cash-Out Refinance.2 

  • Can be used to refinance existing FHA or non-FHA loans
  • Broad qualification requirements 
  • Only available for primary residence
Third FHA Loans Product Image

Finance the cost of purchasing or refinancing and repairing a primary home.

  • Government-backed FHA Loan, with similar eligibility requirements
  • Variety of eligible improvements 
  • Escrowed renovation funds held in an interest-earning account
  • Any remaining funds in escrow at the end of renovation are applied to pay down the principal balance of your mortgage
Need help with a down payment?

Our dedicated loan consultants may be able to help you find down payment assistance programs, where they are available.

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Disclosures:

1 This offer must be mentioned at time of application, which extends a credit of up to $500 applied at the time of closing. Offer excludes the “One-Time Construction” loan product. Borrower is responsible for closing costs incurred if the loan does not close and/or is not funded by Farm Bureau Mortgage, LLC. A borrower may not use this offer to obtain a refund for closing costs in the event that a loan fails to close or fund. This offer cannot be used with any other discount or promotion. This offer applies to mortgage applications and is subject to change without notice.

2 By refinancing the existing loan, the total finance charges may be higher over the life of the loan.

Farm Bureau, FB, and the FB National Logo are registered service marks owned by and used by Farm Bureau Mortgage under license from the American Farm Bureau Federation. Farm Bureau Mortgage is a service-to-member institution which provides mortgage services to Farm Bureau members and others in participating states. See Affiliated Business Arrangement Disclosure for more details.

NMLS ID 2122423. Visit Licensing or NMLS Consumer Access for details.