FHA Loan FAQs

The FHA Loan Program was implemented in the 1930’s as a way to help American families become first time homeowners and avoid foreclosure on their properties. Today, the program is still going strong and millions of families across the US have used it to their advantage. Here are a few commonly asked questions regarding FHA Loans.

Q. Do I have to supply a down payment?

A. Yes. While it is necessary to provide a down payment on the property, this amount is much smaller than with a conventional loan and can be as low as 3% of the total cost of the property. There are some programs available like the American Dream Down payment Initiative (ADDI) that can help eligible families by supplying the down payment and all closing fees.

Q. Is the FHA Loan program only available to first time home buyers?

A. No. You can apply for as many FHA loans and refinances as long as the property you are buying is your primary residence, and you have paid off enough of the previous FHA Loan.

Q. What is a streamline refinance?

A. The streamline refinance refers to the ease and affordability of refinancing the loan for a lower interest rate. You can refinance at any time, as long as the new rate is lower than the one you are currently receiving.

Q. Are there programs available to help me avoid foreclosure?

A. Yes. FHASecure is a program that allows families with good credit who have defaulted on their loan to refinance. There is also the HOPE for Homeowners program which helps families refinance if they are having difficulty making payments.

Q. Can I buy a four-unit home with an FHA Loan?

A. Yes. You can qualify for 1, 2, 3 or 4 unit homes with an FHA Loan as long as the unit does not exceed your county’s loan limit.

Q. What are the county loan limits?

A. The county loan limits vary from county to county, with the limits being higher in those areas where housing prices are more expensive. The loan limit also changes depending on whether you plan to buy a 1, 2, 3 or 4 unit property. Check out the Department of Housing and Urban Development (HUD) website for more information on loan limits in your area.

Q. Can I get pre-approved for an FHA Loan?

A. Yes. Simply fill out our free online form and we’ll have you pre-qualified in minutes!

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