Federal Housing Administration (FHA) loans are government loans that are great in many situations to assist borrowers with qualifying for a mortgage. The Department of Housing and Urban Development (HUD) oversees and creates the guidelines for FHA loans.
FHA has loan limits set by County. Check those out here. https://entp.hud.gov/idapp/html/hicostlook.cfm
There are two mortgage insurance premiums on FHA loans. Upfront and monthly mortgage insurance. The upfront is generally financed into your loan and the monthly gets paid in your mortgage payment every month.
FHA loans have a 3.5% minimum down payment based on the sales price of the home.
Advantages of a FHA loan –
- Low down payments
- Lower credit score requirements compared to other loans, making them easier to qualify for
- Due to their short waiting period, FHA loans may be great for borrowers with past credit difficulties, including bankruptcies and foreclosures.
- Generally lower rates than Conventional loans
Christina is an experienced loan officer when it comes to exploring your financial needs. Contact her today to set up your consultation. 301-491-4544.