FHA Mortgage Loans

FHA Insured Home Loans

FHA loans have been helping Americans become homeowners since 1934.  FHA is administered by HUD and is a federal government insured home loan program.

An FHA loan allows you to buy a 1 to 4 unit home with as little as 3.5% down and permits the seller to pay up to 6% of the sales price towards the buyers closing costs.  This makes an FHA home loan a good fit for some home buyers who have limited funds available to invest in the home purchase.  FHA permits the down payment to be a gift.

FHA loans have more flexible credit requirements and permit higher income-to-debt ratios then some other loan programs.  Additionally there are some features and benefits about FHA home loans that some times make it the best option.

An FHA Appraiser will complete a brief inspection checklist and repairs may be required.  This should not take the place of a buyer’s general home inspection.

FHA Streamline Refinance:  Homeowners with an existing FHA insured home loan are eligible for the streamline refinance program.  These can be done with an appraisal and have other benefits.  Borrowers with an FHA loan acquired by that agency prior to May 2009 are eligible for reduced mortgage insurance rates.

FHA Mortgage Insurance: FHA insured home loans have both upfront (added to the loan) annual (paid in the monthly payment) mortgage insurance.  This FHA mortgage insurance serves a similar function but is not identical to PMI.