The Federal Housing Administration helps purchasers realize their dreams of homeownership by offering more lenient lending guidelines
WHAT IS AN FHA LOAN?
The Federal Housing Administration (FHA), part of the Housing and Urban Development (HUD), has been specifically designed to help borrowers purchase homes. Not all homebuyers can qualify for conventional home loans, so the FHA assists by offering loan programs with more flexible guidelines.
FHA loans make it easier for us to provide home loans to first-time homebuyers and homebuyers with less than perfect credit. While FHA loans are great for first-time homebuyers, they are open to everyone – purchase or refinance. Unlike Conventional loans, the down payment for an FHA loan may be as little as 3.5%. There are no income limitations because the FHA concentrates more on a borrower's ability to repay the loan. FHA guidelines focus on your repayment history, job, income verification, and credit score. As the price of housing varies across the country, FHA loan amounts are determined by zip code.