FHA Loan


The Federal Housing Administration (FHA) has developed a set of guidelines for lenders to follow in order to have their loans insured. Very rarely does FHA loan funds to borrowers. Their primary role is as an insurer for the lenders. FHA guidelines do allow for easier access to home loans for low and moderate income households.

Advantages of FHA

-Low Down Payment, or 3.5%, this can include earnest money, tax credit and gift money.

-You can have a higher Debt to Income Ratio

-Typically better rates for lower credit score

-Can go down to a 620 Credit Score

-Loan can be assumable, so when you want to sell your homes down the road, this can be a selling tool.

-Mortgage Insurance can be tax deductible

-Can have Seller Contributions