About the Federal Housing Administration
What is the Federal Housing Administration?
FHA provides mortgage insurance to cover loans made by FHA approved lenders.
FHA provides mortgage insurance on single family, multifamily, manufactured homes
and hospitals.
What is Mortgage Insurance?
FHA mortgage insurance protects lenders against loss from homeowner default on
mortgage loans. Loans must meet certain criteria to qualify for FHA insurance.
Why does FHA Mortgage Insurance exist?
Traditionally FHA loans require small down payments, there is more leniency in
FHA loans than conventional loan in calculating income and payment ratios. This allows
more people to realize the dream of home ownership.
What is the Mission of the Federal Housing Administration?
FHA allows more American’s to realize the dream of home ownership.
Why choose an FHA Loan?
There are many great reasons to choose an FHA loan product:
1- You are a first-time homebuyer
2- You don't have very much money to use as a down payment
3- You want the smallest monthly payments possible
4- You are worried about qualifying for the loan
5- You have a troubled credit history
If any of these describe your situation, then an FHA loan is for you.
FHA-insured loans offer many benefits and protections that you won't
find in other loans including:
Small down payment: FHA loans have a low 3% down payment and the money can come from a family member, employer or charitable organization as a gift. Other loan programs don't allow this.
Lower cost: FHA loans have competitive interest rates. Always compare an FHA loan with other loan types.
Easier qualification: Lenders may be more willing to give you loan terms that make it easier for you to qualify.
Troubled credit history: You don't have to have perfect credit to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan.
What type of FHA insured Programs are available?
Refinance - Lower your monthly payment (fixed or adjustable rate)
• (New) FHAsecure - Fixed Rate Refinance
• Refinance - Cash-out
• Refinance - Rate & Term
Purchase a Home (fixed or adjustable rate)
• Purchase Loan - Low down payment
