FHA – Federal Housing Authority

By insuring loans, the Federal Housing Authority (FHA) removes much of the risk of default or foreclosure from a private lender. It’s important to remember that the FHA is not a lender but insures the loans against borrower default.

Advantages

  • Lower interest rates
  • Lower down payment requirements
  • Lower mortgage points and other closing costs
  • Lower incomes eligible to apply
  • Quicker resales
  • Insured by the U.S. government
  • Bankruptcy is not an automatic disqualification

Key Points 

  • Down payment required
  • Upfront Mortgage Insurance Premium (MIP) cost is higher in comparison to Conventional loans, but monthly MIP is lower
  • Loan limits are lower than Conventional loans
  • Requires MIP regardless of the Loan-to-Value (LTV) 

 

Contact Our Mortgage Lenders Today!
Just fill out the quick form below and we’ll take it from there.

Contact Us

  • This field is for validation purposes and should be left unchanged.
NOT A GUARANTEE, OFFER OR AGREEMENT. EVERETT FINANCIAL, INC. D/B/A SUPREME LENDING NMLS ID #2129 (www.nmlsconsumeraccess.org) 14801 Quorum Dr., #300, Dallas, TX 75254. 877-350-5225. © 2017. Information, rates, & programs are subject to change without prior notice. Subject to credit & property approval. Not affiliated with any government agency. Intended for Texas Consumers Only. Texas- SML Mortgage Banker Registration Residential Mortgage Loan Originator.
pros and cons of FHA loans
The Pros and Cons of FHA Loans
FHA loans provide an accessible way for low- to middle-income homebuyers to purchase a house. While you need a lot of money and a fairly solid financial background...
Learn More
FHA loan requirements
What are the Basic FHA Loan Requirements?
FHA loans provide mortgages to families with low to midrange incomes who may not be able to afford the high down payment and other costs associated with a conventional mortgage...
Learn More