FHA Loans in Long Island

If you’re considering buying a home in Long Island, an FHA loan might just be the perfect fit for your financial needs.

Long Island FHA Loans : Benefits & Features

When considering purchasing a home in Long Island, New York, an FHA loan might be the perfect financing solution for many potential homeowners. Backed by the Federal Housing Administration, FHA loans offer a myriad of benefits, making the dream of owning a home more attainable. Here’s a comprehensive guide to understanding FHA loans in Long Island.

Ready to Start the Loan Process?

What Are FHA Loans?

FHA loans are government-insured mortgages that offer an opportunity for homebuyers with lower credit scores or limited savings to secure financing. The Federal Housing Administration, a part of the U.S. Department of Housing and Urban Development, backs these loans, reducing the risk for lenders and often leading to more favorable terms for borrowers.

Call Jet Direct Today! 1-800-700-4JET

FHA Loan Application

Questions About FHA Loans?

Benefits of FHA Loans in Long Island

Lower Down Payments

Traditional mortgage products often require significant down payments, sometimes up to 20% of the home’s value. With an FHA loan, eligible borrowers can put down lower down payments allowing them to purchase a home sooner than they might have otherwise been able to.

More Lenient Credit Requirements

One of the major hurdles for many homebuyers is meeting the credit requirements of traditional lenders. FHA loans are designed to assist those with less-than-perfect credit. This means borrowers with lower credit scores still have a shot at homeownership.

Competitive Interest Rates

Because the government backs FHA loans, lenders are often willing to offer competitive interest rates. This can translate to substantial savings over the life of the loan.

Eligibility Criteria for FHA Loans in Long Island

To qualify for an FHA loan in Long Island:

  • Credit Score: Typically, a credit score of 580 or higher is required. Those with scores between 500-579 may still qualify.
  • Steady Employment History: Lenders prefer borrowers with a consistent employment history, usually at least two years with the same employer or in the same field.
  • Debt-to-Income Ratio: Your total monthly debt payments, including the prospective mortgage payment, should generally not exceed 43% of your monthly gross income.
  • Property Requirements: The home being purchased must meet certain safety, security, and structural integrity standards. An FHA-approved appraiser will evaluate the property.

How to Apply for an FHA Loan in Long Island

  • Find an FHA-approved lender: Not every lender offers FHA loans, so it’s essential to find one that does. They’ll guide you through the application process.
  • Get Pre-approved: Before house hunting, get a pre-approval letter. It gives you a clear picture of what you can afford and shows sellers that you’re a serious buyer.
  • Choose Your Home: Once pre-approved, begin your home search in Long Island. When you find the perfect place, make an offer.
  • Complete the Loan Application: After the seller accepts your offer, finalize your loan application. Your lender will then order a home appraisal.
  • Close the Deal: Once the appraisal is complete and everything is in order, you’ll attend a closing meeting. Sign the necessary paperwork, make your down payment, and receive the keys to your new home!

The Future of FHA Loans in Long Island

Long Island’s real estate market continues to grow, with many prospective homeowners considering FHA loans for their financing needs. As the region’s housing demand surges, it’s anticipated that the popularity of FHA loans will rise, offering affordable homeownership opportunities to many.

Understand the differences between FHA and conventional financing

With an FHA loan, you have the opportunity to purchase a home without sacrificing your financial security. These loans are tailored for those with modest credit histories and require significantly smaller down payments than conventional mortgages – freeing up more money in your pocket! Furthermore, they offer fixed interest rates over several decades by providing borrowers with terms ranging from 15-30 years.

Conventional Mortgage LoanFHA Loan
Minimum Down Payment3%3.5%
Loan TermsLoan terms range 8 – 30 yearsLess options than conventional, but between 15 – 30 years
Minimum Credit Score To Qualify620500 with a 10% down payment; 580 & above with a 3.5% down payment
Loan Limits$726,200 in most areas; up to $1,089,300 in high-cost areas for a single unit$410,000 to $972,500 depending on home location
Mortgage InsurancePMI if down payment is less than 20%MIP upfront and monthly insurance throughout the life of the loan (or 11 years with a 10% or more down payment)
Relative Interest RateRates are comparable depending on qualificationsRates are comparable depending on qualifications
Interest StructureMay be fixed or variableFixed or adjustable rate
Who Backs The Loan?Fannie Mae or Freddie Mac usually buy and guarantee the loanBacked by the Federal Housing Administration

If you are considering an FHA loan, it’s important to understand the eligibility criteria.

  • FICO score of 500 to 579 with 10% down, or a FICO score of 580 or higher with 3.5% down
  • Verifiable employment history for the last 24 months
  • Verifiable income, federal tax returns & bank statements
  • Use the loan to finance a primary residence
  • Ensure the property is appraised by an FHA-approved appraiser and followa HUD guidelines
  • Have a front-end debt ratio of no more than 31% of gross monthly income

Final Thoughts

FHA loans in Long Island provide an invaluable resource for potential homeowners, making the dream of owning a home a tangible reality for many. With flexible requirements and favorable terms, it’s no wonder these loans remain a top choice for many in the region. If you’re considering buying a home in Long Island, an FHA loan might just be the perfect fit for your financial needs.

new york FHA loans

Long Island FHA Loan Limits by County

ALBANY County, NY
ALBANY-SCHENECTADY-TROY, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
ALLEGANY County, NY
NON-METRO
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
BRONX County, NY
NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA
1 Unit2 Unit3 Unit4 Unit
$1,089,300$1,394,775$1,685,850$2,095,200
BROOME County, NY
BINGHAMTON, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
CATTARAUGUS County, NY
OLEAN, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
CAYUGA County, NY
AUBURN, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
CHAUTAUQUA County, NY
JAMESTOWN-DUNKIRK-FREDONIA, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
CHEMUNG County, NY
ELMIRA, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
CHENANGO County, NY
NON-METRO
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
CLINTON County, NY
PLATTSBURGH, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
COLUMBIA County, NY
HUDSON, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
CORTLAND County, NY
CORTLAND, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
DELAWARE County, NY
NON-METRO
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
DUTCHESS County, NY
POUGHKEEPSIE-NEWBURGH-MIDDLETOWN, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
ERIE County, NY
BUFFALO-CHEEKTOWAGA, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
ESSEX County, NY
NON-METRO
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
FRANKLIN County, NY
MALONE, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
FULTON County, NY
GLOVERSVILLE, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
GENESEE County, NY
BATAVIA, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
GREENE County, NY
NON-METRO
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
HAMILTON County, NY
NON-METRO
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
HERKIMER County, NY
UTICA-ROME, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
JEFFERSON County, NY
WATERTOWN-FORT DRUM, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
KINGS County, NY
NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA
1 Unit2 Unit3 Unit4 Unit
$1,089,300$1,394,775$1,685,850$2,095,200
LEWIS County, NY
NON-METRO
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
LIVINGSTON County, NY
ROCHESTER, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
MADISON County, NY
SYRACUSE, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
MONROE County, NY
ROCHESTER, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
MONTGOMERY County, NY
AMSTERDAM, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
NASSAU County, NY
NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA
1 Unit2 Unit3 Unit4 Unit
$1,089,300$1,394,775$1,685,850$2,095,200
NEW YORK County, NY
NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA
1 Unit2 Unit3 Unit4 Unit
$1,089,300$1,394,775$1,685,850$2,095,200
NIAGARA County, NY
BUFFALO-CHEEKTOWAGA, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
ONEIDA County, NY
UTICA-ROME, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
ONONDAGA County, NY
SYRACUSE, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
ONTARIO County, NY
ROCHESTER, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
ORANGE County, NY
POUGHKEEPSIE-NEWBURGH-MIDDLETOWN, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
ORLEANS County, NY
ROCHESTER, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
OSWEGO County, NY
SYRACUSE, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
OTSEGO County, NY
ONEONTA, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
PUTNAM County, NY
NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA
1 Unit2 Unit3 Unit4 Unit
$1,089,300$1,394,775$1,685,850$2,095,200
QUEENS County, NY
NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA
1 Unit2 Unit3 Unit4 Unit
$1,089,300$1,394,775$1,685,850$2,095,200
RENSSELAER County, NY
ALBANY-SCHENECTADY-TROY, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
RICHMOND County, NY
NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA
1 Unit2 Unit3 Unit4 Unit
$1,089,300$1,394,775$1,685,850$2,095,200
ROCKLAND County, NY
NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA
1 Unit2 Unit3 Unit4 Unit
$1,089,300$1,394,775$1,685,850$2,095,200
SARATOGA County, NY
ALBANY-SCHENECTADY-TROY, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
SCHENECTADY County, NY
ALBANY-SCHENECTADY-TROY, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
SCHOHARIE County, NY
ALBANY-SCHENECTADY-TROY, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
SCHUYLER County, NY
NON-METRO
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
SENECA County, NY
SENECA FALLS, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
ST. LAWRENCE County, NY
OGDENSBURG-MASSENA, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
STEUBEN County, NY
CORNING, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
SUFFOLK County, NY
NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA
1 Unit2 Unit3 Unit4 Unit
$1,089,300$1,394,775$1,685,850$2,095,200
SULLIVAN County, NY
NON-METRO
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
TIOGA County, NY
BINGHAMTON, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
TOMPKINS County, NY
ITHACA, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
ULSTER County, NY
KINGSTON, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
WARREN County, NY
GLENS FALLS, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
WASHINGTON County, NY
GLENS FALLS, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
WAYNE County, NY
ROCHESTER, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
WESTCHESTER County, NY
NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA
1 Unit2 Unit3 Unit4 Unit
$1,089,300$1,394,775$1,685,850$2,095,200
WYOMING County, NY
NON-METRO
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K
YATES County, NY
ROCHESTER, NY
1 Unit2 Unit3 Unit4 Unit
472K604K730K907K

How Do I Apply for an FHA Loan in NY

When considering an FHA loan, working with Jet Direct Mortgage to gain pre-approval will allow you to explore the amount of financing available for which you can be approved.

Call Jet Direct Today! 1-800-700-4JET

FHA Loan Application

Questions About FHA Loans?

Steps to Secure an FHA Loan in Long Island

At Jet Direct Mortgage, we strive to provide the highest quality of customer service and make your dream of home ownership a reality. Our experienced team are on hand to guide you through the mortgage process from start to finish – helping you select the best option for your individual needs, so that owning a home is both achievable and enjoyable!

Are you looking for a loan that won’t put too much pressure on your credit score? A low down payment option and lenient income requirements could be just what the doctor ordered. Jet Direct Mortgage gives you an easy way to check out FHA loans online, so explore today!

TIP: If your credit score is not ideal, you may need to focus on rebuilding it before beginning the home shopping process. To make sure you are set up for success, speak to one of our FHA loans specialists today.

Is it hard to get an FHA loan in Long Island?

An FHA loan may be easier than a conventional mortgage to obtain; however, lenders have tightened their criteria for successful applicants – such as higher credit scores minimums – in light of current economic challenges.

Helpful Mortgage Videos

Long Island Mortgage Videos

Top Lender for FHA Loans in Long Island

FHA Loan Benefits

  • Acceptable credit scores are lower for FHA loans.
  • FHA loans require a smaller down payment.
  • FHA interest rates are typically lower than conventional rates.
  • Gift funds can be used towards the down payment or closing costs.
  • Sellers are allowed to contribute towards the buyer’s closing costs.
  • FHA loans are assumable, meaning they can be transferred to another borrower.
  • Co-signers are permitted for FHA loans.
  • Higher debt-to-income ratios are allowed for FHA loan applicants.

FHA Loan Pre-Approval Process

  • Ensure that you have the minimum required down payment to qualify for the loan.
  • Review your credit report and address any issues that may negatively impact your credit score.
  • Obtain copies of your tax returns for the last two years.
  • Collect your pay stubs from the last month.
  • Obtain copies of your bank statements from the last two months.
  • Consult with an FHA lender to discuss your loan options and determine the best course of action.

Related FHA Loan articles