The Federal Housing Administration (FHA) is the department of Housing and Urban Development (HUD) responsible for providing mortgage insurance for over 37 million households across the U.S. since 1934.
FHA loan programs have many advantages including but not limited to first-time home buyers. Most lenders will only require a 620 to 640 minimum credit score and a low down payment of only 3.5%, making it easier for you to qualify than a conventional mortgage loan.
Down payment options may include gifts from family or down payment assistance from someone not occupying the residence to co-sign on the loan with you, like a parent or other family member.
Motivated sellers are even allowed to put up to 6% of the purchase price towards your closing costs to assist you. FHA also has mortgage options for 30 year fixed and 15 year fixed mortgages as well as options for adjustable rates loans if you plan on selling your new home in the near future.
FHA loans are only for primary residences, and borrowers are only allowed to have one FHA loan outstanding at a time. Certain fees and monthly mortgage insurance apply. FHA loan amounts also have maximum loan amount, which vary according to where the property is located.
If you are looking to get into a home with a low down payment and have average credit scores, an FHA loan may be perfect for you. To discuss your mortgage needs and learn more about FHA mortgage loan options, please call Mountain Homes Lending at 303-815-6655 or click here to email us and request more information.