Call Jet Direct Today! 1-800-700-4JET
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.
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 Loan | FHA Loan | |
| Minimum Down Payment | 3% | 3.5% |
| Loan Terms | Loan terms range 8 – 30 years | Less options than conventional, but between 15 – 30 years |
| Minimum Credit Score To Qualify | 620 | 500 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 Insurance | PMI 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 Rate | Rates are comparable depending on qualifications | Rates are comparable depending on qualifications |
| Interest Structure | May be fixed or variable | Fixed or adjustable rate |
| Who Backs The Loan? | Fannie Mae or Freddie Mac usually buy and guarantee the loan | Backed 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.
Long Island FHA Loan Limits by County
| ALBANY County, NY | |||
| ALBANY-SCHENECTADY-TROY, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| ALLEGANY County, NY | |||
| NON-METRO | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| BRONX County, NY | |||
| NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| $1,089,300 | $1,394,775 | $1,685,850 | $2,095,200 |
| BROOME County, NY | |||
| BINGHAMTON, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| CATTARAUGUS County, NY | |||
| OLEAN, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| CAYUGA County, NY | |||
| AUBURN, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| CHAUTAUQUA County, NY | |||
| JAMESTOWN-DUNKIRK-FREDONIA, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| CHEMUNG County, NY | |||
| ELMIRA, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| CHENANGO County, NY | |||
| NON-METRO | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| CLINTON County, NY | |||
| PLATTSBURGH, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| COLUMBIA County, NY | |||
| HUDSON, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| CORTLAND County, NY | |||
| CORTLAND, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| DELAWARE County, NY | |||
| NON-METRO | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| DUTCHESS County, NY | |||
| POUGHKEEPSIE-NEWBURGH-MIDDLETOWN, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| ERIE County, NY | |||
| BUFFALO-CHEEKTOWAGA, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| ESSEX County, NY | |||
| NON-METRO | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| FRANKLIN County, NY | |||
| MALONE, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| FULTON County, NY | |||
| GLOVERSVILLE, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| GENESEE County, NY | |||
| BATAVIA, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| GREENE County, NY | |||
| NON-METRO | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| HAMILTON County, NY | |||
| NON-METRO | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| HERKIMER County, NY | |||
| UTICA-ROME, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| JEFFERSON County, NY | |||
| WATERTOWN-FORT DRUM, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| KINGS County, NY | |||
| NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| $1,089,300 | $1,394,775 | $1,685,850 | $2,095,200 |
| LEWIS County, NY | |||
| NON-METRO | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| LIVINGSTON County, NY | |||
| ROCHESTER, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| MADISON County, NY | |||
| SYRACUSE, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| MONROE County, NY | |||
| ROCHESTER, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| MONTGOMERY County, NY | |||
| AMSTERDAM, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| NASSAU County, NY | |||
| NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA | |||
| 1 Unit | 2 Unit | 3 Unit | 4 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 Unit | 2 Unit | 3 Unit | 4 Unit |
| $1,089,300 | $1,394,775 | $1,685,850 | $2,095,200 |
| NIAGARA County, NY | |||
| BUFFALO-CHEEKTOWAGA, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| ONEIDA County, NY | |||
| UTICA-ROME, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| ONONDAGA County, NY | |||
| SYRACUSE, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| ONTARIO County, NY | |||
| ROCHESTER, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| ORANGE County, NY | |||
| POUGHKEEPSIE-NEWBURGH-MIDDLETOWN, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| ORLEANS County, NY | |||
| ROCHESTER, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| OSWEGO County, NY | |||
| SYRACUSE, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| OTSEGO County, NY | |||
| ONEONTA, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| PUTNAM County, NY | |||
| NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA | |||
| 1 Unit | 2 Unit | 3 Unit | 4 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 Unit | 2 Unit | 3 Unit | 4 Unit |
| $1,089,300 | $1,394,775 | $1,685,850 | $2,095,200 |
| RENSSELAER County, NY | |||
| ALBANY-SCHENECTADY-TROY, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| RICHMOND County, NY | |||
| NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA | |||
| 1 Unit | 2 Unit | 3 Unit | 4 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 Unit | 2 Unit | 3 Unit | 4 Unit |
| $1,089,300 | $1,394,775 | $1,685,850 | $2,095,200 |
| SARATOGA County, NY | |||
| ALBANY-SCHENECTADY-TROY, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| SCHENECTADY County, NY | |||
| ALBANY-SCHENECTADY-TROY, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| SCHOHARIE County, NY | |||
| ALBANY-SCHENECTADY-TROY, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| SCHUYLER County, NY | |||
| NON-METRO | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| SENECA County, NY | |||
| SENECA FALLS, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| ST. LAWRENCE County, NY | |||
| OGDENSBURG-MASSENA, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| STEUBEN County, NY | |||
| CORNING, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| SUFFOLK County, NY | |||
| NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| $1,089,300 | $1,394,775 | $1,685,850 | $2,095,200 |
| SULLIVAN County, NY | |||
| NON-METRO | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| TIOGA County, NY | |||
| BINGHAMTON, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| TOMPKINS County, NY | |||
| ITHACA, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| ULSTER County, NY | |||
| KINGSTON, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| WARREN County, NY | |||
| GLENS FALLS, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| WASHINGTON County, NY | |||
| GLENS FALLS, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| WAYNE County, NY | |||
| ROCHESTER, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| WESTCHESTER County, NY | |||
| NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| $1,089,300 | $1,394,775 | $1,685,850 | $2,095,200 |
| WYOMING County, NY | |||
| NON-METRO | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
| YATES County, NY | |||
| ROCHESTER, NY | |||
| 1 Unit | 2 Unit | 3 Unit | 4 Unit |
| 472K | 604K | 730K | 907K |
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
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
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
- FHA 203(k) Loans: A Complete Guide
- Streamline Your FHA Refinance: The Ultimate Guide
- How FHA Loan Limits Affect You
- FHA vs VA Loans: Which One Should You Choose?
- FHA vs Conventional Loan: Which One is Right for You?
- FHA Loans Credit Requirements | The Complete Guide
- FHA Loan Requirements: A Comprehensive Guide for Home Buyers
- Applying for an FHA Loan: A Step-by-Step Guide
- FHA Loans By State
- FHA Loans Florida
- FHA Loans New Jersey
- FHA Loans New York
- FHA Loans Connecticut