FHA Loans are ideal for first-time buyers and low-to-moderate income borrowers. Under the FHA Loan programs, mortgages and home loans are insured by the Federal Housing Administration. Take a look at the eligibility requirements set forth in the FHA Guidelines to see what it takes to qualify for an FHA Loan!
Advantages of FHA Loans include:
· Low Down Payment: The down payment on a FHA loan may be as little as 3%, or less.
· Assumable: FHA loans are assumable with release of liability to the original owner. The FHA Loan is currently the only loan on the market to offer this.
· Energy Efficiency Loans: Home improvements geared at increasing energy efficiency can be rolled into the mortgage (i.e. updated HVAC, energy efficient windows, etc.).
· Streamline Refinancing: When the market takes a more favorable turn, a home can be refinanced often to a lower interest rate, with no need for income, credit, or asset checks.
· ARM Protections: FHA-backed Adjustable-Rate Mortgages offer even more protection from extreme market fluctuations. You will also have the option to refinance into a fixed rate at any time.
Each area of the country has designated maximum loan amounts.
· FHA 15-year or 30-year Fixed Rate Loans
