FHA Home Loans are a mortgage insured by FHA within the Department of Housing and Urban Development. Since 1934, FHA home loans have been available, in fact, FHA began during the depression era. FHA has always been a very popular home loan for first-time buyers. It has also been very popular for people who have suffered bankruptcy or foreclosure, due to shorter waiting periods than conventional loans after these types of events. FHA won’t lend you the money, but an FHA approved lender will. FHA loan limits have been increased over the years to assist as housing has become more expensive. Given the down payment, requirements are currently 3.5%, it opens the door to home ownership for many who thought it would not be possible.
Co-signors are allowed for FHA home loans. A family member to co-sign for the borrower in the event that their debt ratios would be too high to qualify. The family member does not have to live in the house, but they are obligated to the debt as a co-signor on an FHA home loan. With FHA home loans, the borrower can also receive gifted down payment from acceptable sources in the event they are having trouble making the down payment.
There are no income limits, and you don’t have to be a first-time buyer to use FHA home loans for financing. FHA also has a renovation loan called an FHA 203K, which will allow you to finance improvements to your home at closing! Interest rates are typically below market rate since the loan is insured by HUD and you carry mortgage insurance.
FHA HOME LOANS – Do you qualify?
A few other options with FHA home loans
Mortgage Maestro Group is a locally operated FHA approved lender. We have helped homeowners with FHA home loans for decades. In fact, the first loan Ray Williams did was an FHA loan when he got in the business. Our team is founded on one simple principle. We work with honesty and integrity every step of the way. You can also see what people say about working with us here. We will not only guide you through the home buying or refinancing process, but we will educate you, and be available to answer your questions so you feel you had an advocate working with you.