FHA

FHA

What Is An FHA Loan?

FHA loans are backed by the Federal Housing Administration, an agency under the jurisdiction of the Department of Housing and Urban Development. FHA loans are insured by the FHA, which simply means that the owners of your mortgage are protected against loss if you default on your loan. FHA loans are available with low down payment options and lower minimum credit score limits, but you’ll also have to pay mortgage insurance. Here are some benefits of FHA loans: 

• Credit score requirements are lower compared to other loans.
• Your lender can accept a lower down payment.
• You could still qualify for an FHA loan if you have a bankruptcy or other financial issues in your history.
• FHA closing costs can often be rolled into your loan.

Types Of FHA Home Loans

There are several different types of FHA loans. The type of FHA loan you choose limits the type of home you can buy and how you can spend the money you receive. This makes it especially important to be sure that you’re getting the right type of loan. Different FHA loan classifications include:  

• Purchase 
• Rate/Term Refinance
• Streamline
• Cash-Out Refinance 
• 203(k) Loan or Renovation Loan 

The option of a low-down payment and more lenient credit requirements can make FHA loans particularly attractive for first-time home buyers, although you don’t have to be a first-time home buyer in order If you’re in the market for a loan with lenient credit, lower down payment and low-to-moderate income requirements, an FHA loan might be right for you.  To find out if an FHA loan is right for you, talk to our Home Loan Experts.