Helping People Become Homeowners
The Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD), developed the FHA loan program in the 1930s as a way to lower the barrier to homeownership. The U.S. government insures FHA mortgage loans, allowing private lenders to provide consumers with more favorable loan terms.
If you are seeking to buy a home and have limited funds for a down payment, the FHA loan program may be the right choice for you. While it is necessary to meet the guidelines set forth by the FHA program to obtain this type of loan, there are many potential cost-saving advantages over a conventional loan.
How FHA Loans Work
The FHA does not make loans or guarantee loans. It simply insures home loans. The insurance removes or minimizes the default risk lenders face when buyers put down less than 20 percent as a down payment. As an approved FHA lender, we can:
- Take loan applications
- Process loan applications
- Underwrite and close these home loans
FHA Loans Allow a Blemished Credit History
If your credit is less than perfect, FHA might be the loan for you. You may qualify for an FHA loan even though you have had financial problems in the past.
FICO credit scores can be lower than those for a conventional loan.
Even if you had a bankruptcy, you may be able to obtain an FHA loan two years from the date of your bankruptcy discharge, as long as you’ve maintained good credit since your debts were discharged. A Licensed Loan Officer will be able to help you through this process to determine your eligibility.
FHA Loans Boast Competitive Rates & Terms for Borrowers
- 96.5% LTV Financing for Purchases and Rate/Term Refinances up to 97.75%
- 85% LTV Cash-out Refinances
- 6% Seller’s Concessions
- Unlimited Gift Funds Allowed
- Common Sense Underwriting
- Low Closing Costs
- FHA loans are available to anybody but are used most often by First-Time Home Buyers and low to moderate income home buyers. However, note that there are no income limit qualifications.
FHA Loan Advantages
- Low Down Payment
- Limited Closing Costs
- Competitive Interest Rates
- No Pre-Payment Penalties