Does Umpqua Bank do FHA loans?
Written by - February 03, 2023
Yes, Umpqua Bank does offer FHA loans.
What are FHA loans?
Federal Housing Administration (FHA) loans are mortgages backed by the government, designed to help lower-income and first-time home buyers to purchase a property. Unlike conventional mortgages that typically require large down payments and excellent credit scores, FHA loans require low down payments and minimum credit scores.
Why consider Umpqua Bank for FHA loans?
Umpqua Bank has been around since 1953 and is headquartered in Oregon. Being an FDIC insured bank, they offer FHA loans throughout the United States. Here’s why you should consider using Umpqua Bank for an FHA loan:
- Flexible credit requirements: Umpqua Bank offers FHA loans for borrowers with a credit score of 600 or higher. That being said, credit scores under 580 may also be accepted, but these cases are often evaluated on a case-by-case basis.
- Low down payments: Umpqua Bank allows homebuyers to make a down payment as low as 3.5%. Qualifying veterans, active military, and surviving spouses may also be eligible for even lower down payment options.
- Streamlined application process: Umpqua Bank makes it easy and convenient to apply for an FHA loan. You can submit your application online or in person at one of their many branches spread across the country.
How to apply for an FHA loan with Umpqua Bank?
To apply for an FHA loan with Umpqua Bank, there are several steps you'll need to follow, including:
- Gather the necessary documents – you'll need to provide various documents to support your application, including pay stubs, W-2s, bank statements, tax returns, and any other required information as needed.
- Pre-qualify – you can pre-qualify for an FHA loan by visiting any Umpqua Bank branch and speaking to a loan officer or by submitting the application online. This will give you an idea of how much you can borrow and the interest rate you may need to pay.
- Complete the application – once you’re pre-qualified, you’ll need to submit a full application, which you can do online or in person.
- Wait for approval – after submitting your application, it may take a few days to hear back from Umpqua Bank regarding your loan approval status.
Why should you consider getting an FHA loan?
Here are some reasons why you should consider getting an FHA loan:
- Lower credit score requirements: FHA loans are ideal for people who have low credit scores since they typically have more lenient guidelines than conventional loans.
- Lower down payment requirements: The minimum down payment required for an FHA loan is 3.5%, which makes it an attractive option for those who cannot afford a larger down payment.
- Flexible qualifying criteria: FHA loans have more flexible qualifying criteria, unlike some conventional loans. This is because they are backed by the government and designed to help low- to moderate-income borrowers.
What are the drawbacks of getting an FHA loan?
While FHA loans can be a great option for some borrowers, they also have some drawbacks to consider. Here are a few:
- Mortgage insurance premiums (MIP): Every FHA loan borrower is required to pay mortgage insurance premiums (MIP). The premium is paid monthly and is often more expensive than the private mortgage insurance (PMI) required for conventional loans.
- Lower loan limits: FHA loans have lower borrowing limits than conventional loans. The limits may vary from state to state and can depend on your credit score and income.
- More paperwork: Applying for an FHA loan can be more complex than conventional loans. You'll likely need to provide more documentation, including additional forms required by the FHA.
Overall, Umpqua Bank is a reliable lender that can help you with an FHA loan. However, it’s always a good idea to shop around and compare lenders to ensure you get the best interest rate and terms for your needs. For instance, you may also want to check out Mortgage Brokers Pro , who has been providing FHA loans since 1999.