Blog posted On January 26, 2021
This month, The Mortgage Reports named CMG Financial among the 9 Best FHA Mortgage Lenders for 2021. Recognized for its low mortgage rates and “superior customer care,” CMG was ranked the third-best FHA lender in the nation.
According to The Mortgage Reports’ survey, CMG has the third-lowest average rates for FHA loans and a top-rated customer service. CMG’s customer service was ranked the highest among all of the mortgage companies – with the best online reviews and least amount of customer complaints reported to the Consumer Financial Protection Bureau (CFPB).
Other notable considerations include the handy mobile app that lets customers monitor and advance their FHA loan application, and Chief Strategy Officer, Paul Akinmade, getting recognized as a 2020 HousingWire Tech Trendsetter.
The FHA Loan is one of the many low-down payment options offered by CMG. Backed by the U.S. federal government, the FHA Loan is generally less restrictive than conventional loans – with easier qualifications and down payments as low as 3.5%. Many buyers assume that a 20% down payment is required in order to purchase a house, but there are several low down payment options (like the FHA Loan) that can help you reach your home buying goal faster and easier. The low-down payment option of the FHA Loan is one of the many reasons it is popular among first-time home buyers.
To qualify for the 3.5%* FHA Loan down payment, you must have a credit score of at least 580. If it’s between 500 and 579, you will need at least a 10% down payment. If you’ve had a bankruptcy or foreclosure in recent years, you need to reestablish your credit to qualify for an FHA Loan.
Everyone who finances their mortgage with an FHA Loan is required to pay a Mortgage Insurance Premium (MIP) and an upfront funding fee of 1.75% of the home’s purchase price. The price of the MIP varies, but it is typically about .5% to 1% of the loan. You pay the MIP for a minimum of 11 years unless your down payment is less than 10% — then you will have to pay the MIP through the life of the loan. Other FHA Loan requirements include steady employment, U.S. citizenship, and a property appraisal. Last week, the HUD announced that the FHA would once again be backing mortgages for DACA immigrants as well.
CMG has FHA Loans available in a fixed-rate or adjustable-rate. Fixed-rate options include 15, 20, 25, and 30-year terms, while adjustable-rate FHA loans are available in 5/1 terms. If you would like to learn more about your FHA Loan options, ask us and we would love to help. Our customers are our top priority and we’re grateful that we get to continue helping you with all your home financing needs!
*FHA Payment example: If you choose a $250,000, 30 year loan at a fixed rate of 3.75% (3.94 APR) with a loan-to-value (LTV) of 96.5%, and a $173/month PMI, you would make 360 monthly payments of $1,315. Payment stated does not include taxes and insurance, which will result in a higher payment.
Sources: The Mortgage Reports