FHA Loan

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Looking to buy a home, but don’t have the cash to put 20% down? Is your credit less than perfect? An FHA loan may be just the solution to help you buy your new loan. Let’s explore the benefits of an FHA loan.

On Q Financial offers credit scores as low as 580 to potentially obtain. FHA’s minimum down payment can be as little as 3.5% on most types of properties. 100% of the down payment can be a gift funded by various parties such as the home buyer’s family member, employer or labor union, a charitable organization, and more.

Contact an On Q Financial Mortgage Consultant today to find out if an FHA loan is right for you.

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What is an FHA Loan?

An FHA loan is a solution for buyers that might not otherwise qualify for a conventional mortgage. An FHA loan is a mortgage that allows for a purchase of a primary residence with a low down payment and is insured by the Federal Housing Administration. FHA loans help families become homeowners by lowering the cost of financing and the down payment barrier to buying.

Several refinancing options are also available with FHA loans.

What Are The Benefits of An FHA Loan?

Less-than-perfect credit can be considered

FHA allows for people with a credit score of 580 or higher to potentially obtain financing. Borrowers who do not have FICO scores and can provide acceptable alternative credit have the possibility of qualifying. FHA has shorter waiting periods than conventional loans for borrowers who have had credit events, such as a bankruptcy, foreclosure or a short sale as long as they have re-established credit. FHA allows a relative(s) to be a non-occupant co-borrower(s) to assist the borrower in qualifying.

Down payment requirements can be low

FHA’s minimum down payment can be as little as 3.5% on most types of properties. These mortgages are insured by FHA which allows borrowers to finance approximately 96.5% (excluding mortgage insurance) of the value of their home purchase in many cases.

Borrowers can make the down payment with a gift

The down payment can be 100% gift funds from a family member or in some cases a charitable organization. This is one of the key benefits to an FHA program. Verification of the source of gift money is required, and cash gifts are not allowed.

FHA Streamline Refinance Loan

FHA has streamline refinance loans that cut down on the amount of documentation required from the borrower and the underwriting that needs to be performed by On Q Financial.

The basic requirements of a streamline refinance are:


The mortgage to be refinanced must already be FHA-insured


The mortgage to be refinanced should be current (not delinquent)


The refinance is to lower the borrower’s monthly principal and interest payments


No cash may be taken out on mortgages refinanced using the streamline refinance process


No appraisal no credit qualifying is available

Whether you’re looking to purchase or refinance a home using an FHA loan, an On Q Mortgage Consultant can help you achieve your financial goals.

FHA Loan Scenario

The following loan scenario is only an example. Actual amounts, fees, and rates vary depending on each individual borrower’s situation and additional factors. Loan example is based on a 30 year fixed FHA mortgage loan with 3.5% down.  Amounts are based on a loan amount of $200,000, interest rate of 5.375%, APR of 6.714%, and down payment of $7000 as well as estimated additional funds due at closing of $5,554.  Approximate monthly payment of $1,495. Loan Amount includes 1.75% upfront fee.  Loan scenario does not include additional fees associated with monthly mortgage expenses such as HOA fee.  All amounts shown are estimates and will vary for each loan.  All figures are given for comparison purposes only and are not a commitment to lend or extend credit. Program availability is subject to change without notice. This is not an offer for extension of credit or a commitment to lend. Additional restrictions may apply. On Q Financial, Inc. is an Equal Housing Lender. NMLS 5645


See if an FHA loan is right for you

Apply Now

FHA Loan Calculator

Use our free mortgage payment calculator to see your potential monthly mortgage payments.

Buying a home is a big investment, it’s important to understand everything involved and see how much you can afford.

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This calculator provides a broad look at your monthly mortgage payments. To get a personalized quote from an On Q Mortgage Consultant, call 1-866-667-3279.

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