FHA Mortgage Loans

The Federal Housing Administration (FHA) was an outcome of the National Housing Act of 1934 and been a part of the U.S. Department of Housing and Urban Development since 1965. It was created to help make homeownership more affordable to Americans after coming out of the great depression. 

Benefits of an FHA Loan:

FHA Loans are the easiest loans to qualify for. They are popular among first time home buyers that very lttle savings or credit issues. The FHA insures mortgages that are issued by lenders and that insurance protects them in case of default. This is why FHA Lenders can offer better terms to borrowers who would otherwise not be able to qualify for a home loan. 
  • 3.5% down payment

  • Minimum Credit Score of 500

  • No prepayment penalty ever

  • An FHA loan may also be assumable

  • Up to 50% debt to income ratio

  • Allows for 6% seller paid closing costs

  • Easy to use gifts for the down payment and closing costs

  • Allows for non-occupying co-borrowers to help qualify