FHA Loans

FHA (Federal Housing Administration) has helped Americans gain the financial independence that comes with owning a home. This program was created over 70 years ago and remains as one of the most affordable mortgage loan products available today. The Federal Housing Administration has provided an opportunity for people who have not been able to save money for a large down payment or people that may have had credit issues in the past and are now on the right track toward improving their credit history.


Program Details

The most popular FHA home loan is the 203(b). This fixed-rate loan program often works well for first time home buyers because it allows individuals to finance their home loan with only 3.5% down. The 203(b) home loan is also the only loan in which 100 percent of the closing costs and down payment can be a gift from a relative.

Mortgage insurance on FHA loan is often rolled into the total monthly payment at 1.15%. The upfront mortgage insurance which is 1% of the loan amount is also rolled into the loan and is a one-time charge. After five years or when the loan balance reaches 78 percent, the additional mortgage insurance is typically met and therefore drops off the total monthly payment.


It is not necessary to meet a minimum income requirement in order to qualify for a FHA loan but debt ratios have been put into place to prevent borrowers from getting into a home they cannot afford. This is done through a close analysis of income and monthly expenses. Minimum credit scores may vary, please call our mortgage professionals for more details.


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