FHA Mortgages

FHA Mortgages have been helping American families afford homes for over seventy years. Today, the FHA has made it easier and more affordable than ever to become a first time homeowner. As part of the US Department of Housing and Urban Development (HUD), the FHA seeks to make homeownership a reality for all Americans by extending some really great benefits to those in need. Here are a few of those great benefits, and what you need to do in order to obtain your FHA Mortgage today.

Low Down Payment

One of the greatest benefits of FHA Loans is the low down payment feature. When you apply for a conventional loan, you can sometimes be expected to pay upwards of 20% for a down payment, which get very expensive for people hoping to upgrade to a big family home. With an FHA Mortgage, you can sometimes qualify for a loan with as little as 3% down. Plus, this money can come from anywhere, whether it’s from a friend, charitable organization or employer. This means that young families with little savings will still be able to make homeownership a reality.

No Insurance

While it is possible to find some conventional loans that only require 3% down, they often make up for the risk by having the borrower pay for Private Mortgage Insurance (PMI). With an FHA Loan, however, you are already insured in the event of a default on the loan resulting in foreclosure. The Federal Government will pay your lender a certain amount if you do not meet the stipulations of the loan, which means you are not required to pay costly PMI.

Low Closing Fees

Closing fees on conventional loans can sometimes add up very quickly, leaving the borrower way out-of-pocket. The FHA puts a limit on how much your lender can charge you, and will even allow you to roll the cost of the closing fees into the loan itself. In some cases you can qualify for an additional 6% on the loan to pay for the closing fees.

Obtaining an FHA Mortgage

FHA Mortgages are much more common than you may realize, and qualifying is incredibly easy. Simply take a minute to fill out our free online form and you’ll be pre-approved within minutes!

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