Types of FHA Mortgages

The FHA has been around since 1934, helping Americans afford homes and avoid defaulting on their loans. They have done this by extending some really great benefits to those in need, making the entire loan process much simpler and more affordable than conventional loans. One of the many benefits of the FHA home loan program is the flexibility of different mortgages and payment plans. Here are the different FHA insured loans you might want to consider applying for.

Standard FHA Mortgage

Applicants who are looking to become first time homeowners will want to consider applying for a standard FHA loan. The FHA offers loans for as little as 3% down, which results in huge savings when compared to the standard 20% down for conventional loans. When you go through the FHA, you also won’t have to pay private mortgage insurance (PMI) and will get to take advantage of low interest rates.

203(k) Mortgage

A 203(k) mortgage is specifically designed to help those individuals who want to buy a house that needs repairs done to it. With a conventional loan, you often won’t be approved until all the repairs have been made, but repairs can only be made when the house has been purchased. The FHA eliminates this quagmire by issuing a loan for the cost of the house and any repairs that need to be made.

Reverse Mortgage

The FHA offers its own reverse mortgage called the Home Equity Conversion Mortgage (HECM). The HECM is available to homeowners over the age of 62 who want to borrow cash against the house’s equity. The HECM does not need to be repaid until the owner sells the house or passes away.

Energy Efficient Mortgage

People who want to make a difference in the world would do well to apply for an FHA Energy Efficient Mortgage (EEM). The EEM includes the total cost of the house and any energy efficient improvements the borrower wants to make.

Getting Started Today

If any of these FHA mortgages sounds appealing to you, the first step you’ll need to take in order to obtain one is to get pre-approved. When you take a minute to fill out our online form we’ll have you pre-qualified for a loan for free without any obligations. Pre-approval has never been easier!

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