The Basics & Benefits of an FHA Loan

What are the key feature of an FHA Loan? Great question...let's start there.

1.) Flexible eligibility :  FHA loans are designed for first time homebuyers or those borrowers who may have limited savings or lower credit scores

2.) Lower down payments : typically 3.5% down is all you need

Important Basics

• FHA loans are insured by the U.S. Federal Housing Administration (FHA), which allows lenders to offer them to borrowers who might not qualify for other loan types.
• FHA loans require you to pay mortgage insurance premiums (MIP). These include an upfront fee as well as ongoing premiums that are added to your monthly payments.
• You can use an FHA loan to refinance, as long as your existing mortgage is also an FHA loan.

Major Benefits

• FHA loans offer down payments as low as 3.5%, which makes them a great choice for first time homebuyers, or anyone who is buying a home on a budget.
• You can use funds from gifts or grants toward your down payment and closing costs.
• Flexible guidelines may help you qualify even with a lower income or credit score.
• You can refinance your FHA loan through a streamlined process, with no appraisal, credit check, or income verification.

Before deciding which loan best suits your circumstances, make sure you know all of your options. What's best for me, may not be the best for you! Ask questions and do some research so you enter the loan process with confidence!