Section 203(b) is the centerpiece of FHA's single-family mortgage insurance programs - the successor of the program that helped save homeowners from default in the 1930s, that helped open the
suburbs for returning veterans in the 1940s and 1950s, and that helped shape the modern mortgage finance system.
Today, FHA Home Mortgage Insurance is still an important tool through which the Federal Government expands homeownership opportunities for first-time homebuyers and other borrowers who would not otherwise qualify for conventional mortgages on affordable terms, as well as for those who live in underserved areas where mortgages may be harder to get.
These obligations are protected by FHA's Mutual Mortgage Insurance Fund, which is sustained entirely by borrower premiums. This program provides mortgage insurance to protect lenders against the risk of default on mortgages to qualified buyers.
Insured mortgages may be used to finance the purchase of new or existing 1 to 4-family housing, as well as to refinance debt.
Easier to Qualify: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.
Less than Perfect Credit: You don't have to have a perfect credit score to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA home mortgage than for a conventional loan.
Low Down Payment: FHA home loans have a low 3.5% down payment and that money can come from a family member or employer as a gift. Other than VA, most other loan programs don't allow this low down payment flexibility.
Costs Less: FHA home loans have competitive interest rates because the Federal government insures the loans.
Helps You Keep Your Home: Should you encounter hard times, FHA provides options to help keep you in your home and avoid foreclosure.
Closing Costs Can Be Financed: And, some fees are limited. FHA rules impose limits on some of the fees that lenders may charge in making a mortgage.
Ready to Get Started? (Just 3 Steps!)
1. Are you a First Time Buyer? If you are, you should review the Home Purchase Process. And then, ...
2. Figure out how much you can afford to pay for a home. The way to do this is to calculate your Debt-to-Income ratio, or you can contact us so that we can do that for you.
3. Get Pre-Approved on your home loan. Knowing that your mortgage loan and credit report are already approved will let you look for your new home with confidence.
Also, a pre-approval lets the seller know that your offer is
solid and that you're a serious buyer.
Let us know you're serious about buying a home by filling out the information request form. Click button below to get started.
