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FHA Loans

What is an FHA Loan?

FHA stands for Federal Housing Administration. It is a Branch of the Department of Housing and Urban Development (HUD).  FHA’s primary responsibility is administering the government home loan insurance program, which is designed to help home buyers by removing some of the risk from the lender with its mortgage insurance.  The main advantages of an FHA home loan is that the qualifying criteria are not as strict as other loans, and down payment requirements are traditionally lower as well.  FHA loans are available for first time home buyers and seasoned borrowers as well.

Benefits of an FHA Loan

  • Has down payment options as low as 3.5% of purchase price.
  • May allow you to use gift funds for all or a portion of the down payment and closing costs. 
  • Available for all income levels.
  • Allows a co-applicant to help you qualify.
  • Allows a new buyer to take over the loan if home is sold (subject to loan approval).