FHA Loans

FHA loans are a great option for a lot of Homebuyers. Those with low-to-moderate income can benefit from a lower down payment requirement, lower monthly premiums, and lower closing costs.

What is a FHA Loan?

An FHA loan is a mortgage loan insured by the Federal Housing Administration (HUD). These loans are designed to help low-to-moderate income borrowers who may have lower credit scores. FHA mortgages can be used to finance 1-4 unit residential properties and approved condominiums with as little as 3.5% down, but they can only be used to finance a primary home. Here’s a breakdown of the essentials:

Key Benefits of an FHA Loan:

Low Down Payment: As low as 3.5% of the purchase price.

  • Flexible Credit Requirements: More lenient credit standards compared to conventional loans.

  • Insured by HUD: Provides added security to lenders, often resulting in lower interest rates.

  • Supports Diverse Property Types: Can finance single-family homes, multi-family homes, and approved condominiums.