FHA loans are insured by The Federal Housing Administration, which is a part of the U.S. Department of Housing and Urban Development (HUD). Ginnie Mae is to FHA loans as Fannie Mae and Freddie Mac are to conventional loans.
FHA loan programs provide help to creditworthy, low-to-moderate income families that do not meet the requirements for other conventional financing alternatives. They are typically easier to obtain than conventional loans for those with spotted credit.
The government-backed insurance lowers the risk and cost of lending, typically resulting in lower interest rates for consumers than they would receive with other types of financing.
The minimum down payment for FHA loans is only 3.5%. This makes FHA loans an attractive option for aspiring homeowners lacking large sums of cash especially since tightened lending conditions have brought back the 20% down payment standard.
There are several FHA loan programs that cover an assortment of needs.
FHA-Insured Mortgage Programs:
- 203(b) – Buyers with low down payment and little credit history
- 203(h) – Disaster victims
- 255 – Reverse mortgages
- 203(k) – Rehabilitation mortgages
- EEM – Energy-efficient mortgage program
- 248 – Native American reservations
- Title I – Home improvements
For more information on FHA loans, check out http://www.hud.gov/offices/hsg/sfh/fharesourcectr.cfm or give us a call at 850-259-1788 or 850-259-4270 and we will be more than happy to get you in contact with some of our preferred lenders that have expertise in FHA Loans.
If you or someone you know is looking at buying or selling property…rely on the experts, Team Baranowski! Call 850-259-1788 or 850-259-4270 or email us for a free consultation.
