The The Federal Housing Administration (FHA) mortgage insurance program is managed by the Department of Housing and Urban Development (HUD). FHA loans are available to all types of borrowers, not just first-time buyers. While the buyer will have to pay for mortgage insurance (often referred to as PMI), the down payment requirements for this type of loan are as little as 3.5% of the purchase price.
Benefits of a FHA Loan
- Requires less of a down payment to qualify.
- Is a viable option for buyer with “less than perfect” credit.
- Interest rates are typically lower than rates on conventional loans.
- Buyers can ask sellers to pay up to 6% of their closing costs, as compared to a 3% limit with conventional loans.
Other Loan Options
Did you know that an FHA Loan is assumable? This means you can take over an existing FHA loan (if applicable) as a buyer instead of taking out a new mortgage.
Learn More about Buying a Home
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