FHA loans gov

FHA Home Loans

FHA Home Loans are mortgages insured by the Federal Housing Administration that feature lower underwriting standards and rates than conventional loans, along with lower minimum down payments of 3.5%. Additionally FHA borrowers are required to pay for mortgage insurance (MIP) to protect the lender in the event of a default.

FHA Loans Are Flexible And Accessible

Home buyers today don't often buy homes with 20% down.

FHA Allows A 3.5% Downpayment

For today's home buyers, there are only a few mortgage options which allow for downpayments of five percent or less. The FHA is one of them.

With an FHA mortgage, you can make a downpayment as small as 3.5%. This benefits home buyers who don't have a lot of money saved up for downpayment; and, home buyers who would rather save money for moving costs, emergency funds, or other needs.

FHA Allows 100% Gift Funds

The FHA is aggressive with respect to gifts for downpayment. Very few loans programs will allow your entire downpayment for a home to come from a gift. The FHA will.

Via the FHA, your entire 3.5% downpayment can be a gift from parents or another relative, an employer, an approved charitable group, or a government homebuyer program. If you're using a downpayment gift, though, you'll need to follow the process.

The FHA Doesn't Require A SSN

Not every home buyer will have a valid social security number and, according to the FHA, that's okay. FHA guidelines permits loans to employees of the World Bank and foreign embassies, for example.

The FHA will also insure loans for non-permanent resident aliens.

There Are Many FHA-Approved Lenders

FHA loans can be funded by any FHA-approved lender. This includes mortgage lender, savings-and-loans institutions, and credit unions. The marketplace for FHA loans is giant, which creates competitive pressure among lenders to offer low FHA rates and low FHA fees.

It pays to "shop around" on an FHA loan.

Furthermore, because different banks use different methods to underwrite, your FHA loan can be declined by Bank A but approved by Bank B.

If you meet the rules of the FHA, you can apply until your loan get approved!

There Are Many FHA Loan Products

Via the FHA, you can get a mortgage of almost any type.

The agency is best-known for its traditional 30-year fixed-rate mortgage, but the FHA also offers a 15-year fixed rate loan as well as a series of adjustable-rate mortgages (ARMs).