FHA mortgage loans are issued by federally qualified lenders certified by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.
FHA loans are an attractive option, especially for first-time homeowners:
- Generally easier to qualify for than conventional loans.
- Lower down payment requirements.
- Cannot exceed statutory loan limits.
- FHA charges a 1.75% upfront premium built into the loan
- FHA also charges .85% Monthly insurance premium for the life of the loan
- Minimum Down Payment is 3.5% of purchase price or 96.5% of appraised value
- Rates are not as sensittive to credit score as conventional loans are
- 100% purchase opton avaialble for First time home buyers via the state program (CHFA)- certain qualifications apply and may be different then FHA
- Non-Occupant co-borrowers allowed
Contact Horizon Home Mortgage today to see if FHA is right for you!!