FHA loans are government-backed loans offering a low down payment option (as little as 3.5%) and have less strict credit requirements. FHA loans require private mortgage insurance, which is an added cost into your monthly mortgage payment.
Get Your Free Home Buying Guide
What Are FHA Loans?
An FHA loan is a mortgage that is insured by the Federal Housing Administration (FHA) and offered only through FHA-approved mortgage lenders. Because these loans are easier to qualify for, they are extremely popular with first-time homebuyers.
Benefits of an FHA Mortgage
- Borrowers can qualify for an FHA loan with lower credit scores and higher debt to income (DTI) than is typical of a conventional loan
- Down payments as low as 3.5%
- No minimum credit score requirement & non-traditional credit may be used to qualify
- Available in 15, 20, and 30-year terms
Understanding Private Mortgage Insurance
FHA loans include mortgage insurance which protects the lender if the borrower were to default. That monthly insurance premium has an initial upfront collection and also is added to the monthly mortgage payment for the life of the loan for most FHA loans.
FHA Loan limits
FHA loan limits tend to be lower than conforming conventional loan limits. The FHA loan limit is set by the county. Click here to find the loan limit for your property.
Need More Info?
Please provide your contact information below, and a Mortgage Loan Officer will be in touch soon.
Is An FHA Loan Right For You?
The FHA Loan program may be ideal for first-time buyers, buyers with less-than-perfect credit, or buyers without a lot of cash saved for a down payment. FHA mortgages are one of the most popular home financing options today, largely due to their low money-down requirement.
Curious about FHA home financing and whether or not it makes sense for you?
Call the team at Alpha Mortgage for a free quote and home loan consultation.