FHA Mortgage Loans
Achieve the American dream of home ownership by financing your home purchase with a mortgage loan from an FHA-approved lender. FHA-insured mortgage loans have become very popular in recent years. They allow individuals and families with less than perfect credit or little money to pay down to get approved for a mortgage.
The Federal Housing Administration insures mortgages issued by FHA-approved lenders for a variaty of home types including:
- Single family homes,
- Multi-family homes, and
- Manufactured homes.
You should keep in mind that the maximum loan amounts that can be borrowered with an FHA loan varies from state-to-state and even county-to-county. So you will want to check out the FHA loan limits for the county and state in which you plan to purchase a home.
Benefits of FHA Mortgages
One huge benefit of FHA loans during a time when most lenders are requiring a down payment of 10, 15, or even 20 percent is that FHA-insured loans often require down payments of as little as 3.5 percent of the cost of the home. This makes it possible for individuals to purchase a home sooner and even afford more house than they might otherwise have been able to afford. The down payment for your mortgage can come from other sources like family members, an employer, or other charitable organizations. Other loan programs typically do not allow gift money to be used as down payments.
Another benefit of choosing an FHA mortgage over a other converntional loan programs is that even individuals with bad credit an be approved. Previously there were no minimum credit scores for FHA loans. It was up to the lender as to how low a credit score they wanted to approve. However, in 2010 some new rules have been put in place which will require at least a 620 credit score to be approved.
Compare FHA Mortgage Loans from Multiple Lenders
To obtain an FHA-insured mortgage loan you will need to contact FHA-approved lenders and compare their loan offerings. There are free services available online where you can request a loan and get back offers from several lenders.