What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. FHA insurance protects mortgage lenders, allowing them to offer loans with below-average interest rates, easier credit requirements, and low down payments.
FHA loans are usually desired with first time, lower-income, and/or lower-credit home buyers. FHA loans also have to greater flexibility and low rates. But FHA financing isn’t limited to a certain type of buyer – anyone can apply.
How FHA loans work.
The first thing to know about FHA mortgages is that the Federal Housing Administration (FHA) doesn’t actually lend you the money. You get an FHA loan from a bank or lender, like FHA Lending.
The FHA’s primary role is to insure these mortgages, offering lenders protection in case borrowers can’t pay their loans back. This allows mortgage lenders offer FHA loans with lower interest rates and looser standards for qualifying.
With an FHA Loan you will have to pay for the FHA insurance that protects your mortgage lender. This is called “mortgage insurance premium” or MIP.
Reach out to our FHA Lending Experts.
Let us help you see how an FHA Loan can help you get into that new house. Our qualified and knowledgable experts can assist you with your home loan questions. Complete the simple contact form and one of our FHA experts will contact you quickly and promptly.
FHA Loan Benefits:
- Credit score requirements are lower compared to other loans.
- You may still qualify for an FHA loan if you’ve had a bankruptcy or other past financial issues.
- FHA loans are available with fixed or adjustable rates and for 30 or 15 year terms.
- These loans also have low down payment requirements.
Refinancing also has great benefits:
- Your closing costs can be rolled into your loan.
- If you already have an FHA loan, you can refinance with an FHA Streamline. This requires less documentation and you may not need an appraisal. The FHA Streamline may be a great option if you’re not looking to take cash out.
FHA Mortgage Insurance (MIP)
An FHA loan is a mortgage insured by the Federal Housing Administration. FHA insurance protects mortgage lenders, allowing them to offer loans with below-average interest rates, easier credit requirements, and low down payments.
FHA loans are usually desired with first time, lower-income, and/or lower-credit home buyers. FHA loans also have to greater flexibility and low rates. But FHA financing isn’t limited to a certain type of buyer – anyone can apply.
