FHA Loans

What Is an FHA Loan?

An FHA loan is a mortgage loan guaranteed by the Federal Housing Administration and issued by private lenders. In 2018, there were 8 million FHA-insured mortgages. Though popular with first-time homebuyers, they are available to anyone that meets the qualifications. An FHA loan can be obtained through an FHA approved lender like FMS Bank for home purchase, refinance or home renovations.


Because the credit score and down payment requirements on FHA home loans are lower than some other options, it allows more families and individuals an opportunity to own a home. Even if you have had some credit problems in the past, you may still qualify. The buyer may also be eligible with assistance from the seller or a gift from family members.

Buyers may also choose between a fixed-rate or variable rate mortgage. A fixed-rate mortgage does not change during the term of the loan as it is not tied to an index rate. Variable-rate or adjustable-rate mortgages are linked to a benchmark index. ARMs may seem attractive due to a low initial interest rate, but the payments can increase quickly due to interest rate changes.


The FHA loan requirements are advantageous to those who are just starting out or those who are starting over. The down payment and may be lower based on your credit score. However, the length of time that mortgage insurance is required is shorter with a larger down payment.

Down Payments

  • 3.5% with a credit score of at least 580
  • 10% with a credit score between 500 and 579
  • 6% of closing costs can be paid by the seller
  • Mortgage Insurance
  • The annual mortgage insurance premium must be paid upfront
  • MIP is only required for 11 years if at least 10% down payment is made

Why Choose Us?

FMS Bank believes that your success is our success. We value your privacy, your security and your business. Our dedicated banking staff is here for all your banking and mortgage needs. Since we know that our customers require convenience, we offer both online and mobile banking, and you can check balances, history or transfer funds at any time by phone.

Our experienced mortgage loan department offers many types of home loans. As an FHA-approved lender, we help new homeowners achieve their dreams with FHA home loans. When you are ready to purchase a home or refinance your existing mortgage, let the caring and knowledgeable loan officers at FMS Bank help. Contact us to find out how we can help you with your home loan.

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