FHA loans-Low down payment of 3.5% with credit scores of 500 or better are required. Scores of 660 gets you better rates for this program and down payment assistance may be possible in Lafayette parish when funds are available. Scores under 580, down to 500, do require 10% down payment and are done on a case by case basis. The lender will require a reasonable explanation due to the lower credit scores to explain how it was an extenuating circumstance that should not happen again. Scores of 580-640 can be done with 3.5% down but again case by case with supporting factors and things that would help to get the loan approved would be like good rental history or proof to show the ability to save. Scores of 640 or better are usually easier to get approved and over 680 gets the best interest rates for this program. The lower the score the higher the rate due to the risk level of the loan. FHA loans are a great way to get into a home with very little down and average credit scores with great interest rates. On a FHA loan the down payment may be a gift from a family member, the seller can pay up to 6% of the closing costs and as stated above sometimes there’s down payment assistance when funds are available. Please feel free to message, email or call us for any questions that you may have as we are here to help and look forward to assisting you through the home loan process. There are several FHA loan programs and the basic is the FHA 203b, rehabilitation loan 203k and so on. For detailed information on all of FHAs programs you can visit here -> https://www.fha.com/fha_loan_types
There are no income limits for this program but there is a 2019 loan amount limit of $314,827 so if you need to finance over this you would need to look at doing a Conventional, VA or USDA/RD program. USDA/RD aka Rural Development does not have a loan amount limit per se but it does have max income limits and location eligibility requirements so you will need to be aware of those and we do share this on our other USDA/RD page.
• Two-unit: $403,125
• Three-unit: $487,250
• Four-unit: $605,525