The Federal Housing Administration (FHA) is a government entity that offers
mortgage insurance on loans made by FHA-approved lenders.
The FHA provides insurance on mortgages for many different types of homes including single-family and multifamily homes. The FHA is completely funded by its own self-generated income, meaning there is no cost to taxpayers for its operation and services. These loans are designed to help first-time homebuyers and experienced homeowners alike by
providing them with a low down payment option. FHA mortgage insurance serves as protection for lenders in the event of a homeowner defaulting on their home loan.
FHA Loans Benefits
FHA insured loans often give potential homeowners the option of making a lower down payment
than they would need to make if using a traditional, non-FHA insured mortgage.
FHA loan benefits include:
Down payments as low as 3.5%
Loan is guaranteed by the government
Less than perfect credit can apply
Interest rate and payments remain the same of the duration of the loan
Lower monthly payments then the fixed rate mortgage, but payments can increase with loan rates
FHA offers refinance options to either reduce your interest rate or take cash-out from your existing mortgage by taking out another mortgage for more than you currently owe.
Helps homeowners significantly lower their monthly utility bills and incorporate the cost of energy efficient improvements into their mortgages
FHA reverse mortgage is designed for homeowners age 62 and older and allows the borrower to convert equity in the home into income or a line of credit