FHA loans

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

Some of the other benefits of FHA financing:

• Only a 3.5% down payment is required
• Closing costs are regulated by HUD
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancelation of the premium.
• More flexible underwriting criteria than conventional loans
• Sellers can offer up to 6% in closing cost concessions as long as borrower meets minimum equity contribution 
• Loans are assumable to qualified buyers

If you have questions about FHA financing, please call us at 1-866-241-3080 or e-mail us.

Click here to learn how you can get pre-approved for a loan today! It's fast, easy, and free!