FHA loansleft


An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations.


Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.


FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

Some of the other benefits of FHA financing:


  • Only a 3.5 percent down payment is required. Gifts can be used for down payment and closing costs 
  • Closing costs can be financed.
  • Upfront mortgage insurance premium is 1.75% and monthly is typically 1.35% when putting 3.5% down payment.
  • More flexible underwriting criteria than conventional loans
  • FHA allows the seller to pay up to 6% of the sales price towards your closing costs
  • Loans are assumable to qualified buyers.