FHA can be your BEST option – Empowering buyers like YOU!
FHA can be your best option for achieving the dream of homeownership.
Getting To Know The Federal Housing Administration
The Federal Housing Administration (FHA) is a government entity that offers mortgage insurance on loans made by FHA-approved lenders. The FHA provides insurance on mortgages for many different types of homes including single-family and multifamily homes. The FHA is completely funded by its own self-generated income, meaning there is no cost to taxpayers for its operation and services.
What Are FHA Loans?
These loans are designed to help first-time homebuyers and experienced homeowners alike by providing them with a low down payment option. FHA loans are insured by the Federal Housing Administration. FHA mortgage insurance serves as protection for lenders in the event of a homeowner defaulting on their home loan.
How FHA Loans Benefit You
FHA insured loans often give potential homeowners the option of making a lower down payment than they would need to make if using a traditional, non-FHA insured mortgage. FHA loan benefits include:
- Down payments as low as 3.5%
- Loan is guaranteed by the government
- Less than perfect credit can apply
- Energy-efficient mortgages, reverse mortgages, refinances, and renovation loans also available
- Streamlined documentation on refinances
- FHA can provide a better alternative to Conventional Loans
- Fixed or adjustable rate
- Limited closing costs; sellers can help pay closing costs
- No prepayment penalty
FHA Loans Benefit Everyone
These loans don’t just benefit the potential homeowner – they also are beneficial for the economy as a whole. They stimulate economic development in the form of expanding tax bases and creating jobs.
In fact, the FHA was created in 1934 as a direct response to difficulties in the housing industry such as unfavorable mortgage loan terms, low rates of homeownership nationwide and widespread unemployment among construction workers.