Federal Housing Administration (FHA) insured loans are made by private lending intuitions such as banks, savings & loans, or mortgage companies to eligible borrowers for the purchase of a home. FHA insured loans offer a number of benefits for both lender and borrowers. Since 1934, the program has insured over 35 million home mortgages.
In addition to the favorable financial terms, FHA insured loans offer the following benefits:
- Equal opportunity for all qualified borrowers
- Required down payments as low as 3.5% of the purchase price
- Ability to finance up front Mortgage Insurance Premium
- Ability to finance the cost of repairing and / or improving a property in need of rehabilitation
- Right to prepay without penalty
- Credit Improvement in the qualifying process for some borrowers
- Availability in all areas of the country
- Default assistance and foreclosure prevention
For more information about home ownership and to see what options you may have through the FHA Loans program contact us today.