FHA Home Loans

As a community bank, F&M Bank is proud to be an approved FHA lender. Created by The National Housing Act of 1934, the FHA loan program has helped generations of first-time buyers become homeowners. These mortgages are also popular among homebuyers who can’t make a 20 percent down payment and may not have the credit history to qualify for a conventional mortgage. FHA loans can be used to purchase a home or refinance an existing mortgage. The minimum down payment is 3.5 percent, and gift money is allowed. FHA loans generally offer more flexibility with other eligibility requirements, such as debt-to-income ratio.

Pros and Cons of FHA Home Loans in Virginia

  • As with other types of mortgages, you can get pre-approved for an FHA home loan.
  • The most attractive benefit of the FHA loan is its low down payment requirement, and the ability to use a financial gift or inheritance.
  • Younger, first-time, and lower-income buyers also appreciate the lower credit score and debt-to-income ratio requirements.
  • The main downside of an FHA loan is the mortgage insurance requirement. FHA borrowers must pay an upfront mortgage insurance fee of 1.75 percent of the total loan amount, as well as a monthly premium regardless of down payment size.
  • As with VA loans, houses purchased with an FHA loan must meet certain quality standards.
  • FHA loan limits are lower than conforming loan limits, which may restrict your options.

What types of properties can you purchase with an FHA Home Loan?

You can only use an FHA loan for primary residences.

F&M Mortgage: A Virginia Tradition Since 1908

F&M Mortgage, a division of F&M Bank, has been investing in Shenandoah Valley communities, and helping Virginians become homeowners for more than a century. We are proud to be one of the area banks that offer FHA loans. Our Mortgage Advisors are committed to offering friendly, personalized service, with the kind of local expertise you only find in people who live and work in your community. Ready to apply for an FHA loan? Use our online mortgage application or apply in person at your nearest branch. If you’re not sure which mortgage loan is the best option for you, give us a call today!

Have Questions? Get In Touch

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