FHA Loans

A Federal Housing Administration (FHA) Loan is a mortgage insured by the U.S. government. FHA Loans are designed to help low-to-moderate-income families buy homes.

With a low down payment requirement of just 3.5%, FHA Loans make homeownership more accessible. They also have more flexible credit score requirements than conventional loans, making it easier to qualify. Additionally, FHA Loans allow for down payment assistance to lower your out-of-pocket costs. Because these loans are backed by the government, the interest rates may also be lower than with other home financing options.

An FHA Loan can be used to finance a variety of property types as long as they meet FHA eligibility requirements. These include single-family homes, multi-unit properties (up to four units), FHA-approved condominiums, and manufactured homes on a permanent foundation. However, the property must serve as your primary residence. Additionally, the home must pass an FHA appraisal to ensure it meets safety, security, and livability standards.

Yes, FHA Loans require mortgage insurance to protect the lender in case of a loan default. There are two types of FHA mortgage insurance premiums: an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP). The UFMIP is typically 1.75% of the loan amount and can be rolled into the loan balance. The annual MIP is paid monthly as part of the mortgage payment and varies based on the loan term, loan-to-value ratio, and loan amount. Unlike conventional loans, where private mortgage insurance (PMI) can be canceled once enough equity is built, FHA Loans require mortgage insurance for the life of the loan unless you refinance into a conventional mortgage.

Yes, you can make extra payments or pay off your Federal Housing Administration (FHA) Loan early without penalty.

Many self-employed individuals qualify for FHA mortgage loans. However, additional documentation may be required to verify your income, like tax returns, profit and loss statements, bank statements and other documents as requested.

FHA Loans are available to anyone who meets the eligibility requirements. While FHA Loans are popular among first-time homebuyers due to their low down payment and flexible credit score requirements, repeat homebuyers can also use them to purchase a primary residence.

Yes, FHA Loans require a down payment, but it’s lower than what conventional loans typically require. Borrowers with a credit score of 580 or higher can qualify with a 3.5% down payment, which makes homeownership more accessible.

No, FHA Loans can’t be used for investment properties or vacation homes. They are designed specifically for primary residences. However, FHA Loans can be used to purchase multi-unit properties (up to four units) as long as you live in one of the units.