Georgia fha lenders

FHA Approved Lenders in Georgia

FHA loans are a good option for a variety of borrowers.  This includes those who want to place a low down payment, as well as those that struggle with some credit issues.  Some think of FHA loans as subprime mortgages, but they technically are not.  However, they do serve borrowers that can not qualify for a prime mortgage or conventional loan.

2024 Georgia FHA Loan Requirements

You may view the primary FHA loan requirements for Georgia below.  Each individual FHA approved lender may have some of their own loan requirements in addition to these.

Credit – Most Georgia FHA lenders will require that you have at least a 580 credit score.  However, we work with a few lenders that will go down to a 500 credit score.

Down Payment – The standard down payment requirements for a FHA loan is 3.5% of the purchase price.  So on a $200,000 loan, the down payment would need to be $7,000.  If your credit score is below a 580, you may need to place as much as 10% down in order to qualify.

FHA Loan Limits – The FHA loan limits are the maximum loan amount available in a particular county.  You can view the 2024 FHA loan limits for Georgia, on this page.

Employment – FHA loans require that you prove 2 years of consistent employment.  You will need to provide at 2 years tax returns, and most lenders want to see your 2 most recent bank statements as well.

Property – The FHA has property requirements, which includes what are known as “minimum property standards”.  The home you want to purchase must undergo an appraisal and meet these guidelines, which relate to the condition of the home.  The appraisal must also verify the value of the property.

Mortgage Insurance – There are two types of mortgage insurance premiums (MIP) required for all FHA loans.  The first type is upfront mortgage insurance premiums (UPMIP), which is 1.75% of the total loan amount.  This fee can be included in the loan, and does not need to be paid out of pocket.  The second type of mortgage insurance premiums is paid monthly, which is 0.85% of the loan amount (calculated annually, but paid monthly as part of the monthly mortgage payment).

These are the standard requirements for a FHA loan.  When you apply, if you are approved, you will be provided a checklist of requirements known as “loan conditions”, which will outline what you must provide in order for the loan to close.

Click here to see if you qualify for an FHA loan

Best Georgia FHA lenders

Below are our selections some of the FHA lenders in Georgia. Please keep in mind that everyone’s situation is different and each of these lenders may offer different options. For example, not all can help with poor credit, and most may not offer the 203k rehab loan. We recommend completing this short loan scenario form and we will help determine the best FHA lender in Georgia for you specifically.

1.) Quicken Loans

2.) Guaranteed Rate

3.) NewRez Mortgage

4.) US Bank

5.) loanDepot

6.) Prime Lending

7.) Freedom Mortgage

Please note:  We are not affiliated with all mortgage lenders that are featured on our website.  We include who we consider to be the best lenders for various mortgage programs.  If you would like some help getting connected with an excellent FHA lender in Georgia, please fill out this form.

Georgia FHA 203k Rehab Loans

With an FHA 203k rehab loan, you can purchase a home in Georgia that may need some work or updates with a 3.5% down payment. In addition, the program allows you to borrow the funds needed to make those updates and repairs.

The repairs or updates that you can make with the program are very extensive. Anywhere from painting, remodeling, replacing the roof, updated kitchens, bathrooms, appliances, plumbing, electrical systems, and more. You can even repair termite damage which is a problem in the state of Georgia.

Something you cannot do is install a new swimming pool, but you can repair a pool if it was there when you purchased the home. You may need to hire an FHA 203k consultant to help manage the project.

Georgia FHA Cash Out Refinance

Another great benefit of an FHA loan is the ability to cash out equity from your home.  You cash out up to 80% of the appraised value of the home an use the money for anything you need. The funds do not have to be spent on the home.

You can refinance with an FHA loan even if your current mortgage is not an FHA insured loan. let your loan officer discuss all options with you and evaluate whether it is best to do this with an FHA loan or a different program.

Buying a Home in Georgia with a Recent Bankruptcy

FAQ – FHA Loan Requirements in Georgia

Are FHA loans only for first time home buyers?

FHA loans are not restricted to first time home buyers. If you have owned a home before, you may still get a FHA loan. However, you may only have one FHA loan and they are only available for primary residences. If you already own a home in Georgia, you may be able to buy another one while keeping your current FHA loan.

How do I apply for an FHA loan in Georgia?

It is very easy to get pre-qualified or to apply for a FHA loan once you complete a loan application.  We recommend having us match you with a FHA lender in Georgia based on your personal needs (such as estimated credit and loan amount).

To be matched with a FHA lender, please fill out this form.  Once you are matched with the right lender, you can get a pre-approval letter in less than 24 hours.

Is down payment assistance available for FHA loans?

If you qualify for down payment assistance, it can be used with a FHA loan.  There are many programs in Georgia (such as the Georgia Dream program) available that provide funds to use for down payment assistance.  We can help you find out if you qualify for any of them.

What are the options to refinance an FHA loan?

The FHA offers two different programs for refinancing a FHA loan. This includes the FHA streamline refinance, which allows you to easily lower your interest rate and mortgage payment (and does not require a credit check, income documentation, or a new appraisal). The other option for refinancing an existing FHA loan, is the FHA cash out refinance, which allows you to pull out money from the equity in your home.

A third option would be the FHA 203k rehab loan which allows you to refinance your current loan while also borrowing additional money to upgrade or rehabilitate the home.

Are cosigners allowed on FHA loans?

Cosigners are allowed on FHA loans but at least one of the borrowers must occupy the property. Non-occupying co-borrowers are allowed though, which means the person cosigning does not need to live at the property that is financed using a FHA loan.

Keep in mind that adding a cosigner will only help if you are looking to bring additional income to the mortgage application. A co-signer cannot help with poor credit situations.

Can You Buy a Home in Georgia with a Recent Bankruptcy?

The FHA rules state that you must wait at least 2 years after filing a chapter 7 bankruptcy before finalizing your loan application and securing an FHA case number.

If you are currently in a chapter 13 bankruptcy, you only need to wait until you have successfully made 12 months of payments. Additionally, you will need to provide the court trustee’s written approval. Keep in mind that most lenders who offer FHA loans will make you wait until 1 year has passed after the discharge date. However, we work with lenders who can help you without waiting.

Read [qualifying for a mortgage after a bankruptcy]

How long after a foreclosure can you get an FHA loan?

The FHA rules state that you must wait at least 3 years before you are eligible for a FHA loan. However, there is an exception to this rule if there were “extenuating circumstances”, such as a job loss. You would also have to show some improvements to your credit since the foreclosure. In the event that the circumstances and credit improvements are satisfactory, you would only have to wait until after 1 year before you can apply for a FHA loan.

Read [qualifying for a mortgage after a foreclosure]

FHA Loan Requirements in Georgia