If you’re interested in buying or refinancing a home but find that a conventional mortgage loan isn’t a fit for you, a Federal Housing Administration (FHA) loan may be an option.
What is an FHA?
An FHA loan is a home loan that is issued by private lenders but insured by the federal government. Because of that federal backing, lenders are able to offer better flexibility with credit history and down payment requirements.
FHA loan programs look at your credit history, instead of just your credit score, which may help borrowers who can demonstrate improved credit and positive debt management. Additionally, down payment requirements are lower. They can be as low as 3.5% instead of a more typical 10-20% that is required for a conventional loan.
What else you need to know.
FHA loans feature:
Low down payment requirements
More flexible credit score requirements
Primary residences only
Refinance options available
Payment mortgage insurance (PMI) required
If you’re interested in learning more about FHA loans or to see which mortgage products available through 1st United or our mortgage partner, CU HomeLand/American Pacific Mortgage, may be a fit for you, simply call one of our friendly real estate experts at (800) 649-0193. We’re happy to help.