FHA Loans

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.
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
• Flexible underwriting criteria than conventional loans
• Loans are assumable to qualified buyers

 

Comments or questions are welcome.

*(denotes required field)

Name: *

E-Mail Address: *

E-Mail Address again: *

Please enter your E-mail Address a second time.

Subject: *

Message: *

CAPTCHA Code: *