FHA Loan

FHA Loan

This loan is offered through the Federal Housing Administration (FHA) and offers less stringent qualifying criteria to help more people get into homes. Some of the terrific features of this loan program are:

  • A very low down payment

  • Down payment gifts may be from family members, employers, or persons with whom the borrower has had a long standing, close (family type) relationship.

  • Non-occupying, co-mortgagors are also permitted to assist buyers with qualifying. Generally, the same relationship to the buyer must exist as indicated in the gift commentary above. Co-mortgagors must be credit qualified, sign the note and appear on the deed of trust at closing.

  • Even if you had less-than-perfect credit in the past, you may qualify for an FHA loan – ask us for details.

  • 100% financing – some options are available to secure a down payment in the form of a community second mortgage. These options can be explored with one of our licensed loan professionals.

FHA Mortgage Insurance Premium

By insuring participating lenders against losses, the FHA makes it possible for millions of people to own homes. This insurance is known as the Mutual Mortgage Insurance Premium Program (MMI/MIP). The insurance costs may be financed into the loan amount.

Currently, FHA will only insure loans for owner-occupant purchases that are 1-4 units. In addition to the upfront MI, borrowers have an annual premium (paid monthly).