FHA Loans
FHA
An FHA loan is a type of government-backed mortgage insured by the Federal Housing Administration, a branch of the U.S. Department of Housing and Urban Development, or HUD. FHA loans are popular with first-time homebuyers because they allow for down payments as low as 3.5% and they have more flexible credit score requirements. Because of an FHA loans’ more lenient lending standards, they require a lifetime mortgage insurance premium.
- 30-year, 25-year, 20-year, 15-year, and 10-year terms available
- Adjustable rate mortgages allowed
- Minimum down payment: 3.5%
- Single family and 2-4 units acceptable
- Primary residence only
- Grants and gifts permitted from suitable sourcesd
- Non-occupant co-borrower can be used for qualifying
- Flexible or no credit scores
- 2 years post-bankruptcy
- 3 years post-foreclosure
- Government sponsored down payment assistance
- Common sense underwriting
- Seller concessions up to 6%
- 203K Rehab loans
- Loans can be assumable
- Maximum loan amounts are restricted by geographical area
- Reduced monthly mortgage insurance
- Purchase or refinance