What is an FHA Mortgage loan?
FHA stands for Federal Housing Administration (FHA) which is a governmental agency created in 1934 to improve housing standards and promote home ownership. The FHA insures FHA mortgage loans, which makes the loans less risky for lenders that underwrite and fund FHA mortgages. In turn, they offer better terms. Why an FHA Loan
FHA mortgage loans offer flexible loan guidelines which allows more people to qualify. Whether you have had credit challenges in the past or are simply looking to limit your down payment to 3.5%, an FHA loan might be an ideal home financing solution. Bankruptcy time to wait guidelines
: 2 YR’s since the Date of Discharge Foreclosure
: 3 YR’s since Lower Interest Rates than other mortgage loan programs FHA Mortgages offer lower interest rates than a conventional mortgage loan.
Why? Because they are insured by FHA (The Federal Housing Administration). MI
(Mortgage Insurance) FHA Mortgage Loans have mortgage Insurance, called MI (Mortgage Insurance).
There are two types:
1) Upfront & Monthly. The upfront PMI is rolled into the loan
2nd Is monthly MI, which is paid through your escrows, a part of your monthly mortgage payment.
MI is in place in case a borrower defaults and the home is foreclosed on. FHA (The Federal Housing Administration) pays funds from the mortgage insurance pool of funds to the bank that owns the loan for losses on the loan that are incurred. In short, it is a way to mitigate the risk for the banks, FHA & HUD in exchange for a low down payment and less restrictive guidelines to get a loan. It’s a give and take relationship to own a home. Why Us for an FHA Loan?
We are the FHA loan experts. We have more FHA Lenders that we work with all across the US. We have more flexibility of loan options for FHA loans and we offer better pricing options because we work with wholesale lenders. This equates to more borrowers being helped and better pricing for our customers. If you are buying a home and need an FHA home loan, we are here to help you.