FHA Loan Program
The Federal Housing Administration (FHA) is an agency within the Department of Housing and Urban Development. FHA loans are designed to help low- to moderate-income creditworthy families by offering a mortgage with lower down payment requirements and less restrictive qualifying criteria.
Important Benefits of FHA Loans:
- Only a 3.5% down payment is required
- Down payment can be a gift or a loan to the borrower from an eligible source, such as a family member or a state housing agency program
- Sellers may pay 6% toward closing costs, prepaids, buy downs, abatements, etc.
- Cash reserves are not required (except for 3 and 4 unit properties)
- Flexible guidelines for qualifying ratios
- More lenient on credit blemishes
- Non-occupying co-borrowers are allowed
- At least one borrower must occupy the property as a primary residence
- Second homes aren't permitted. Investment properties are only eligible for streamline refinances without an appraisal
Contact one of our mortgage loan officers to get pre-qualified today!