Types of FHA Loans

The Federal Housing Administration (FHA) has been helping Americans afford new homes since it created the loan program in 1934. They have made homeownership a reality for millions by extending great benefits to those who qualify. These benefits include low down payments, competitive interest rates and high loan limits. The FHA also offers several different types of mortgages that can be tailored to specific needs and income levels. Take a look at these different plans before you decide to apply for an FHA Loan.

Standard FHA Home Loan

If you are looking to purchase your first home, you can apply for a standard FHA Loan. With this loan, it is possible to qualify for a loan with as little as 3% down on the property. You also won’t be required to pay private mortgage insurance (PMI) because the loan is already insured for you by the Federal Government.

HUD 203(k)

The HUD 203(k) program was designed to help people purchase homes that need repairs. Most conventional loans will not allow you to qualify for a loan until all repairs have been made to the house, but repairs cannot be made until the house has been bought which presents a bit of a catch-22 situation. The HUD 203(k) helps the borrower out of this conundrum by issuing a loan for the total cost of the house plus all repairs.

Home Equity Conversion Mortgage

The Home Equity Conversion Mortgage (HECM) is the HUD’s own reverse mortgage. The HECM allows you to draw out cash from your house’s equity which then does not need to be repaid until the house in no longer occupied by the borrower. This is a great plan for older Americans who need supplemental cash while still wanting financial security. In order to qualify for this loan you must be over the age of 62 and own the house outright.

Energy Efficiency Mortgages

Right now people are more aware of the environmental impact they have on this earth more than ever, and are seeking ways to make a difference. The FHA helps those who want to make eco-changes by offering an Energy Efficiency Mortgage (EEM). The EEM works the cost of all energy improvements into the total cost of the loan.

Get Started Today

Whether you want to apply for an EEM or an HECM, we can help you get started. Simply fill out our free online form and you’ll be pre-approved within minutes!

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