Federal Housing Administration Loan

An FHA loan is insured by the Federal Housing Administration (FHA). These loans are designed to help low and moderate-income individuals and families purchase a home. An FHA loan is more affordable and accessible than other types of loans.

FHA Loan Benefits:

• Low down payment requirement: FHA loans require a down payment of only 3.5%, which is lower than the down payment required by many other types of mortgage loans. This can make it easier for borrowers to save up for a down payment and buy a home.

• More flexible credit requirements: FHA loans have more flexible credit requirements than other types of loans, which can make it easier for some borrowers to qualify.

• Competitive interest rates: FHA loans typically have competitive interest rates, which can save borrowers money over the life of the loan.

• 100% gift funds: The entire 3.5% down payment can be a gift from parents, relatives or an employer.

• Seller Assist: FHA allows seller to give up to 6% of the home’s purchase price to an FHA buyer to pay for closing costs and pre-paid costs.

• No prepayment penalties: FHA loans do not have prepayment penalties, which means borrowers can pay off their loan early without incurring additional fees.

• Other benefits: FHA loans also offer additional benefits, such as the option to refinance your mortgage at a lower interest rate, and the ability to take out a cash-out refinance loan to access the equity in your home.