Who is the FHA?
The FHA (Federal Housing Administration) is the largest insurer of mortgages in the world, insuring over 34 million properties since 1934. FHA loans provide mortgage companies with insurance, but more importantly assurance on all loans borrowed by individuals interested in refinancing or purchasing a home; mortgage companies are insured should a buyer default on their mortgage payment.
There are several government insured loan programs available at low fixed rates, requiring very little cash to close such as:
First Time Home Buyer Loans
- Low down and closing costs
- Monthly payments comparable to rent
- Easier credit requirements
- Co-signer allowed
- Reduced interest rate
- No appraisal or equity requirement
- Less paperwork and speedy processing
The Streamlined 203(k) Rehab Loan
- Utilize for renovation or repairs
- One close, one loan, all costs included
- Available for refinance
FHA mortgages are government-assisted alternatives to conventional financing and are great options for those who want to put less money down or who have lower credit scores. They are popular for home purchases and for refinancing. While these mortgages do require expenses in the form of monthly mortgage insurance, they still enable many homeowners who don’t qualify for conventional financing to purchase or refinance a home.
The advantages of an FHA loan include:
- Put as little as 3.5% down
- Qualify with less-than-perfect credit
- No appraisal required in some instances
- No pre-payment penalties
- Close in as little as two weeks