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FHA Home Loan

Dreaming of Homeownership? Explore How an FHA Loan Can Make It a Reality!

Welcome to 1st Colonial Community Bank, your trusted ally in Southern New Jersey and Southeastern Pennsylvania. We're not just a bank. We’re all about exceptional customer service, building lasting relationships, and being a part of the local community. An FHA Loan is the perfect launchpad for first-time home buyers like you, offering a unique blend of flexibility and security to help you achieve your homeownership dreams.

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Fueling Your First Home Purchase

An FHA loan isn't just a financial product; it's a rocket that propels you into the universe of homeownership. Whether you're ready to move out of your rental, apartment or family home, our FHA loan, with its low down payment and flexible requirements, can help you land safely in your dream home. It's designed to make homeownership accessible and affordable, especially for those who might find it challenging to save for a large down payment or who have a less-than-perfect credit history.

Stepping Stones to Your First Home: FHA Loan Features

Our FHA mortgage offers:

  • Low Down Payment: With a minimum down payment of 3.5% for credit scores above 580, homeownership is no longer light years away. This feature makes it easier for first-time homebuyers to make the leap from renting to owning.
  • Flexible Credit Score Requirements: Even if your credit score is below 600, you can still launch your homeownership journey with a slightly larger down payment of 10% down. We understand that everyone's financial journey is different, and we believe that a lower credit score shouldn't be an obstacle to home ownership.
  • Mortgage Insurance Premium (MIP) Payments: This ensures your loan is backed by the government. While this adds an extra cost to your monthly payments, it allows us to offer you the benefits of an FHA loan.
  • Primary Residence Requirement: The home purchased must be your primary residence, ensuring community stability. This requirement ensures that FHA loans are used to support homeownership and community stability, rather than investment properties.

Qualification Requirements: Preparing for Homeownership

To qualify for our FHA Loan, you need to meet the following requirements:

  • Steady Income and Employment Proof: We value your financial stability and ability to repay over past credit challenges. We'll need to see evidence of steady income and employment to ensure that you can handle the financial responsibility of a mortgage.
  • Debt-to-Income Ratio:  FHA loans allow flexibility however a debt-to-income ratio analysis is conducted to ensure you can comfortably manage your loan repayments. This ratio helps us make sure that you won't be overextended with your mortgage payments.
  • FHA-Specific Appraisal: We ensure the property meets specific FHA requirements for your peace of mind. This appraisal checks for things like safety, security, and soundness to protect your investment.
  • FHA Loan Maximums: FHA loan maximums apply to certain properties and locations. These loan limits are set by the Federal Housing Administration and can vary by State, County and property type.

Blast Off on Your Homeownership Journey. Apply Today.

Ready to launch your journey towards owning your first home? Apply for an FHA Loan online today or get in touch with us to schedule a meeting with one of our seasoned lenders at a time and location that is convenient for you With locations in Collingswood, Westville, Mount Laurel, and Limerick, we offer easy and convenient access for the homebuyers of Southern New Jersey and Southeastern Pennsylvania. At 1st Colonial Community Bank, we're ready to help you land in your dream home. Let's take this exciting step towards your future together!

Start Your Application

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Frequently Asked Questions about FHA Mortgages

What is an FHA loan?

An FHA loan is a mortgage loan that's backed by the Federal Housing Administration, designed to help first-time home buyers. It offers lower down payment requirements and more flexible credit criteria than many conventional loans.

What are the benefits of an FHA loan?

FHA loans often offer lower down payment requirements and more flexible lending criteria than conventional loans, making them ideal for first-time home buyers. They also allow for lower credit scores and higher debt-to-income ratios than many conventional loans.

What does it mean that the loan is backed by the government?

Loans backed by the government have certain protections and guarantees, which can make them more accessible to first-time home buyers. The government insures the loan, which protects lenders and allows them to offer better terms.

How does Mortgage Insurance Premium (MIP) work?

When you take out an FHA home loan, you might encounter an extra fee called MIP. This fee is like a safety net for the bank, ensuring they're protected if you can't pay back the loan. You'll face a one-time charge, which is 1.75% of the loan amount. You can pay this upfront or spread it out over your loan. Additionally, there's a small monthly fee added to your regular house payment.

What is a Debt-to-Income Ratio? 

Your debt-to-income ratio is a measure of how much you owe each month (including your mortgage, taxes, insurance, and other debts like credit cards) compared to how much you earn. It's a way to see if you can comfortably afford your living expenses.

How can I apply for an FHA Loan?

You can apply online orcontact us to set up an appointment with one of our experienced lenders at a time and location that is convenient for you.  We're here to guide you through every step of the process.

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