FHA LOANS
The Federal Housing Administration (FHA) will back a chunk of your mortgage. Since its inception in 1934, the FHA has helped millions of people by providing insurance against loan default. The FHA Loans are the most popular mortgage program since it insures lenders against losses should a borrower default on their loan. When borrowers and first-time purchasers have more needs, they are more likely to choose FHA mortgages.
- Simple eligibility requirements and credit policies
- Decreased final expenses
- Alternatives with low initial investment costs
Highlights from the FHA
- A 3.5% down payment is required on a single-family home or condo.
- Both mobile homes and prefabricated houses, whether on private land or in a mobile home park, are eligible for FHA financing.
FHA Mortgage Insurance: How It Functions
- Remember that the FHA is not a lending institution but rather a mortgage insurance company.
- A mortgage insurance fee equal to 1.75 percent of the loan amount is due up front. You can finance the initial premium with your loan.
- Along with your regular monthly mortgage payment, you will also be required to pay a mortgage insurance fee. It all depends on how much you put down and how long you plan to keep the loan.
For additional information contact us.
Call Steven Jackson at 813-616-9411 now!
