The FHA, or Federal Housing Administration, makes it easier to qualify for a loan with more favorable terms by insuring your mortgage. FHA-insured mortgages offer many benefits and protection to the borrower.
HOW CAN FHA HELP ME?
One of the great things about FHA loans are that you can buy a home with a down payment as small as 3.5% down, and credit scores as low as 580. There are even options if you have a credit score below 580!
FHA loans tend to have lower interest rates than conventional loans.
The FHA product has been around since the 1930s and will continue to be here to safeguard you. Should you encounter hardships after buying your home, FHA has many options to help keep you stay in your home and avoid foreclosure.
An FHA-insured mortgage can be used to purchase or refinance a new or existing one-to-four family house, a condominium unit, or even a manufactured housing unit
OTHER THINGS TO CONSIDER
Another aspect of a FHA loan is the Mortgage Insurance Premium, or MIP. This is a required insurance that covers the FHA in case of loan default. There is an upfront premium that gets financed into your loan amount, and a monthly premium that gets added on to your mortgage payment and remains for the duration of the loan.
FHA MORTGAGE LOAN FEATURES
- Low down payment options
- Flexible income, debt and credit requirements
- A variety of fixed-rate and adjustable rate loan options
- You may add extra features, such as a temporary buydown
- You may be able to use a gift or grant toward closing costs and all or part of the down payment
FHA MORTGAGE LOAN BENEFITS
- Requires less cash up front for your down payment and closing costs
- Available for all income levels