FHA Home loans
FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development. FHA loans are fixed rate mortgages and an attractive option for many home buyers, especially for first-time home buyers of low or moderate incomes. Generally, this loan program is a great option for individuals with poor credit. FHA loans require a credit score of 580 and above.
- Generally easier to qualify for than conventional loans.
- Have lower down payment requirements (generally 3%, which can come from gift money from a relative if needed).
- Interest rates are usually lower than standard fixed rate loans.
- Programs are available for single family or multi-family homes.
- Government guaranteed by FHA.
- Cannot exceed statutory rate limits.
- The FHA 203k loan program is the primary program for handyman specials and fixer-uppers.