FHA Loan – A Loan Designed to Get You into A Home

FHA loans are insured by the Federal Housing Administration (FHA), and with the government guarantee, lenders are more willing to lend with more lenient qualifying guidelines.  FHA loans have been specifically designed to help borrowers get into homes.

First Time Buyers can often benefit from the more laxed guidelines of a FHA loan, including a lower down payment.  Typical down payments can range between 10% - 20%, but with a FHA loan the down payment can be as low as 3.5%.  This lower down payment can even be provided to you from a family member as a gift fund.

With more lenient qualifying guidelines, FHA loans make homeownership more accessible to more people.  Credit scores as low as 580, lower debt ratios, and seller contributions are all allowed with a FHA loan.  A few ups and downs in your credit history may be ok with the FHA.

FHA Benefits

• Ideal for First Time Buyers
• Lower down payments and gift funds allowed
• More flexible qualifying guidelines
• Available for purchase or refinance, fixed or adjustable rate

First Time Buyers are not the only ones who can benefit from a government guaranteed loan. You can refinance with an FHA loan, even if you don’t currently have an FHA loan.  FHA loans come with a few requirements. Because the program intends to help buyers get into a home, you must live in it as your primary residence.
 
Some FHA programs will require you to have the home appraised by an FHA- approved appraiser. Plan on paying for an Up-Front Mortgage Insurance Premium (UF-MIP) and a Monthly Mortgage Insurance Premium.