FHA Home Loans

An FHA loan is a mortgage loan with flexible underwriting guidelines backed by the Federal Housing Administration (A Department of HUD).  FHA loans are extremely popular with first time home buyers because they allow down payments as low as 3.5% and allow the seller to pay the borrowers closing costs. FHA has flexible credit requirements. FHA borrowers sometimes have credit scores as low as 580.

Nearly 20% of all mortgages in the United States are FHA loans.  A credit challenged borrower is more likely to choose FHA because of the fair treatment of borrowers. The mortgage rate offered to lower credit score borrowers is typically much higher than market mortgage rates but with FHA, the mortgage rate offered only increases slightly for challenged credit. If you want to be sure you are not taken advantage of by a mortgage lender, FHA may be a great option. The loan program for first time home buyers has regulations built in to the guidelines to make sure no home buyer is taken advantage of.

Congress created the Federal Housing Administration (FHA) in 1934. The FHA became a part of the Department of Housing and Urban Development (HUD) in 1965. When FHA was created, the housing industry was not doing well. Two million construction workers had lost their jobs, terms were difficult for home loan applicants, borrowers were required to put 50% down, and only one in ten Americans owned their home. During the 1940’s, FHA programs helped finance military housing and homes for returning veterans and their families after the was. With the help of FHA, by 2001, the nation’s home-ownership rate had soared to an all time high of 68.1 percent.

Benefits of FHA Home Loans

FHA Loans have flexible underwriting guidelines which include lower time needed since a derogatory mark on the credit report.  And the best part, this does not mean a first time home buyer will pay a high interest rate. FHA offers some of the best available mortgage interest rates.

An FHA loan only requires 3.5% down and the seller is allowed to pay your closing costs with seller concessions. In addition to the low down payment FHA also helps insure the property you are buying is a quality home. We would like to think all sellers are honest and aware of all the issues with the home they are selling but  this is not always the case. With FHA, a property appraisal is required in addition to a water and septic inspection for private systems. The inspection and appraisal completed help provide more detailed information to the home buyer to make sure you are not walking in to a money pit. After closing, FHA does not warrant the condition of the property but you put yourself in a better position trying to learn as much about the property before closing on the sale.

  • Low Interest rates
  • Lower Down Payment
  • Closing Costs Can Be Financed
  • Porgram Has Minimum property Condition Requirements
  • Lower Minimum Credit Score
  • Free Application

How Do I Apply For an FHA Home Loan

The first step in applying for an FHA loan is gathering your financial documents to provide to your mortgage lender. If you are an employee with only one income, this should be a simple task. You would Need….

  • W2 Forms From the Past 2 Years
  • One Month of Pay Stubs
  • A Copy of Your Drivers License
  • One Month Bank Statement (All Pages)
  • Last Years Complete Tax Return

If you are self employed, receiving benefits, or in another less common situation, you may need to provide some of the following documents.

  • Social Security, Disability, or Pension Award Letters
  • More Bank Statements to Show Deposits
  • 2 Years of Business Tax Returns
  • Child Support Order, Separation Agreement, or Divorce Decree
  • Bankruptcy Discharge Paperwork

This is not the complete list as the mortgage consultant may ask for additional documents but this is a great way to start. The next step in the process is to submit your application through our portal. Some of the questions you may not know the answer to but do the best you can. Ultimately, this portal is used to gather your personal information securely so we can start the credit consultation process.  Don’t Worry! If you make a mistake or enter incorrect information, we will be in touch to confirm the information.  If you would like to learn more about documents needed to obtain an FHA loan, click here.


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Bank of England Mortgage is a division of Bank of England. Member FDIC. Equal Housing Lender. NMLS # 418481

BOE Mortgage Company FDIC Insured
FHA Home Loan
Service Type
FHA Home Loan
Provider Name
Bank of England Mortgage,
37 Boynton Ave Suite 5,Plattsburgh,New York-12901,
Telephone No.518-324-5544
New York, Maine, New Hampshire, Vermont, New Jersey
An FHA Loan has flexible guidelines backed by the Federal Housing Administration ( A Department of HUD). FHA loans are extremely popular with first time home buyers because they allow down payments as low as 3.5%. . FHA has flexible credit requirements. FHA borrowers sometimes have credit scores as low as 580.